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Online Share Trading

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The truth about technical trading?

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eddy66
Super Contributor
I'm not gonna start a debate about the topic.All I will say is that OST's team got it way wrong.Their entry at 262 on AGL with a stop of 5% would've triggered at 248. So what is the value of tech analysis...
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25 REPLIES 25
NJ_1
Frequent Contributor
One trade stopping out is not enough to declare TA useless, just like one trade making a spectacular profit is not enough to declare TA a miracle get-rich-quick scheme. The idea is to try to limit the losers to around half of your trades, then if you lose 5% on each of those you should be in the black if you make more than 5% on the winners.
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Not applicable
Its a numbers game - making sure that your winning trades are bigger and more frequent (all though this is not a prerequisite) than your losers
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Not applicable
for example, i am losing money on aspen, but the loss is small and it is more than compensated by the money I am making on aveng and naspers.
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jack12
Super Contributor
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eddy66
Super Contributor
I asked what the value is,never said it was useless! Of course there will be times where you make 20% following tech analysis. What's the value lets say compared to just identifying a trend and let it be your friend?
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eddy66
Super Contributor
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Not applicable
um, identifying and trading the trend? Thats technical analysis dude.
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eddy66
Super Contributor
Um,someone not knowing anything about tech can identify a trend,dude.
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Preston
Super Contributor
Bought APN installment that will expire next year July 2010 (i think). Not to concerned about APN for now. Good share, excellent company.
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Not applicable
I seriously doubt it eddie. Virtually every share on the jse is trending right now, which one are you going to pick? Where you going to set your stops? when you going to enter? how big is your position size going to be? These are all question that any technical analyst / trader would first answer before getting in. However, if you are asking me if I put any faith in things like RSI, stochastics, MACD, etc. My personal answer is no, i use candles, price and moving averages. But that is just me, these instruments were invented by some of hte best traders in the world.
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Not applicable
my time frames are shorter on APN. got my entry wrong on this one
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eddy66
Super Contributor
Thanks skaap,I appreciate your reply.I agree with your answer.How long should a share and/or index move in a certain direction for a trend to be identified? According to tech analysis?
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Not applicable
OST got it way wrong, even there exxaro trade.. those who base their trades on those tips are gettin hurt ryt nw, and badly..
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Hedgehog
Frequent Contributor
Hi guys - I have found that the market does the opposite of what the OST team tips - on numerous occasions in the past. One has to use one's own judgement as well and judge the sentiment in the market. I could have made money trading counter to the OST tips.
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jack12
Super Contributor
Agreed, but you could also have been in the money! OST (I think) use a confirmed strategy that works (for them) I have used some of there tips in the past KIO, ACL. on AGL my system was in a buy 3 days earlier so I was already in the market. (remember overbought is not a sell signal until it crosses the 80%. But yeah EXX ow
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jack12
Super Contributor
I don't go long after a gap up, both recommendations were on a gap up. Now is the time to buy into both as the gap has closed IMO
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SimonPB
Valued Contributor
oh eddie, eddie .. one swallow does nothin gmake .. check the track record for the TA ..
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Not applicable
How long is a piece of string? Different systems will try to catch trends at different stages of development. Suggest you read entries and exits - look at the book review thread for more details to see how traders manage their strategies. One thing I absolutely must stess, your entry is such a small part of your trading, that you should only focus 10% of your time on it. When to take profits is by far the most important consideration in a trade (assuming you have mastered the stoploss basics)
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SimonPB
Valued Contributor
err, is that backed by facts - or feeling ?? because the last list I saw from Mox suggests otherwise ..
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