When to re-enter the market?

[Phaedrus]

Until the market as a whole starts showing a little strength, it may well be best to be out of it altogether. Here is a chart of the NZSX50 Index, with 10 assorted technical indicators - how these are used is a very individual decision. Gung-ho players would leap back into the market just as soon as any one of these indicators indicated a change of sentiment. Conservative, cautious investors would wait for all 10 to be triggered before commiting any funds. I favour an incremental approach, investing 10% of my capital as each indicator is triggered. These signals are simply permission to invest - you don't have to act if you can't find anything you want to buy!

Should you be unable to resist some of the "bargains" out there, just remember that buying while the market is falling is more risky than when it is rising, so any "premature" entries should be very closely monitored using short-term indicators and tight stops.

[Year of the Tiger]

Thanks Phaedrus for this thread and your willingness to share your knowledge.

As always, I appreciate the clarity and lack of ambiguity in your posts which makes it so easy for me to understand.

Cheers
YOTT

[macduffy]

Yes, many thanks, Phaedrus. It reinforces my resolve to wait before I buy some of those tempting morsels out there! After investing on fundamentals for longer than I care to remember, I'm now learning to take notice of TA. Proof than old dogs can perhaps learn new tricks!



I guess its been asked before, but what charting software package do you use?

Cheers

[airedale]

Phaedrus, as always your pictures are worth 10,000 words. Thanks for posting.

[Sideshow Bob]

Phaedrus, as you know I really enjoy your posts, for which I thank you again.

However, are you able tell us of your actual trading results over the last month/3 months/6 months/year. It would just seem that with you skills, and knowledge, that you would be able to use this to obvious effect.

So that by this time, you would be sitting nicely on some beach in the Carribbean.....

I'm not trying to be smart, I would just like some sort of idea.



Thanks
SSB

[tobo]

...However, are you able tell us of your actual trading results ...
Thanks
SSB

Have a look at the FBY Charts thread - Phaedrus #50 on 22/01/08 (page 3) and then on 07/02/08 (page 5) - for an example of application of his own rules to his own investing.

[duncan macgregor]

WHITE HERON, Look up investment groups and clubs at the bottom of the page. SHREWDY and STRAT forced me into a competition where at the moment am the only person on sharetrader in front of the market. The prize is skiting rights which i am using up as long as it lasts. Macdunk

[Dr_Who]

WHITE HERON, Look up investment groups and clubs at the bottom of the page. SHREWDY and STRAT forced me into a competition where at the moment am the only person on sharetrader in front of the market. The prize is skiting rights which i am using up as long as it lasts. Macdunk

Have you been sniffing glue again?

[winner69]

I note that 80 odd of the ASX300 went up by 5% or more last week .... thats not too bad for a market in turmoil is it ... and does sound better than money in the bank with some currency gains ... but those currency games come as well

[Mick100]

Have to agree with ratkin here

From what I read twigs never acknowleged the fact the momentum indicators such as RSI had been rising since the jan lows - some other chartists were drawing attention to the improving RSI AND OTHER THINGS SUCH AS THE DIVERGENCE BETWEEN THE TRANSPORTS AND THE INDUSTRIALS

He had an extremely bearish biase in all his charts and commentries