Starting out 2 - Technical Analysis

[theArtfuldodger]

Thanks S. I went to the library today but some sod has already got the "Intelligent Investor" on hire AND there's already another in line for it after him. I'm next though! I'm looking forward to reading it!

I'm starting to put together a general system/process of analysis for investing. I'm thinking I'm gonna go for a hybrid of FA (for identification of opportunities) and TA (for entrance/exit strategy).

Here's what I've identified (noobishly) as being what I see as most relevant/important:

FA Qualitative techniques

- Company direction and ethos
- Management evaluation
- Future expansion prospects/pending projects

FA Quantitative techniques

- EPS + P/E ratio
- Debt ratios
- Cash flow analysis
- ROA
- *Attempted* valuation of pending projects

TA techniques (I've made a bit of a distinction here...)

RIDING THE TREND

- Support/resistance theory (standard deviation channels + candle sticks in particular).

(s.d. channels really seem relevant to me for some reason, given what I've learnt in stats... does anybody else favour these?)

TREND REVERSAL RECOGNITION (entry/exit)

- Volume analysis
- Still working on this...


I realize the volatility of various stocks varies greatly, but given the analysis I've done on NZO (NZ Oil and gas) I think I'll be looking a trading time frame of roughly 2-3 weeks (medium-term trends).

Right! Time to get paper trading!

I realize most of what I've said here is pretty random crap, but I'm excited about all this and I couldn't help but share. Tell me what you think.

Cheers!

A.