Experimenting some TA

[Hoop]

Blu3...please keep to the TA easy stocks...either stocks with repeating patterns or as KW says up trending stocks..

One thing I have learn't over the years is to keep well away from low volume (illiquidity distorts TA indicators) and also TA unfriendly stocks

Afraid of a possible drop with a up trending stocks?....Unfortunately this is some sort of animal instinctive behavioural dysfunction we all have hot-wired into our brains....best way to cope is to reverse think (contrarians are good at it)...If you are not afraid of buying a down trending stock you are therefore sub-consciously not afraid of the drops..right?..eh?...This dysfunction shows up in a big way at certain times...E.g Cautious and Newbie Investors finally shaking of their fear and buying in big time when the market is reaching the top of its bull market cycle and these same investors ride the bear market all the way down only to finally give up and sell out with the feeling of hopelessness and despair near the bottom of the cycle..

Anyway you don't have to worry about this dysfunction problem at all because when you are using a TA discipline, TA decides to buy or sell, not you!!...With up-trending stocks unless there are divergences, TA is nearly always favourable so it's buy buy buy...Afraid of buying in and see the up trend end?.. chances are well in your favour that you will have capital gains by the time the trend ends..if your timing is wrong and the up-trend stock tops out (TA says sell), no problem just quit for a small loss and try again...

Remember two things...TA will tell you when to sell so no need to be afraid.....remember the saying Emotion Kills.. many portfolio disasters are due to misguided feelings, wishful thinking, biases, etc which create false logic and prevents you from selling out or buying in.... being afraid is an emotion and is one of the two most common emotions when share investing (the other is greed)..
I often hear investors say I've tried TA and it doesn't work..When analysing these people, the biggest failing they have is the lack of ability to let go control and trust TA to control for them..

Blu3...All the TA books in the world doesn't help make you successful..You have to have a certain mental makeup..A successful TA investor has to have an inner belief and confidence in the discipline they are relinquishing complete control to, and be able to stick with the discipline during tough times..there will be failures because TA is about 70% accurate (odds in your favour)...The test to see if you are a TA investor or not will arrive when TA says sell on a stock you have total opposite feelings to.. such as a stock with a perception of a lot of fundamental upside left in it... AIR is an example of this at the moment ....remember, trust TA.. if this stock is as good as you think, TA will soon tell you when to get back in..