Trading / Investing based on Technical Analysis
Am I seriously proposing that the financial markets can really be beaten by the application of this simplistic analysis ?
In a word : Yes !
But what about Moving averages, Kalman filters, RSI, Stochastics, Cycles (Astro & other), Dow Theory, Elliott waves, Fibbonnacci, Fuzzy logic, Artificial intelligence, Chaos Theory, Delta theory, Trend-lines etc., etc. ? The use of some of the above tools and techniques / application of the theories may marginally increase the proportion of profits to losses, but this will almost certainly be at the cost of a deterioration of the ratio of average profit to average loss.
Note, however, that discussion of many of these indicators and techniques will be added progressively to this site - let me know if you would like to be kept informed of developments
Remember, the essential point about the trading-style advocated above is that transactions only take place in proximity to support and resistance levels beyond which stops can be placed - so that losses, when experienced, are small. If you rely on one or several indicators or other techniques separate from the direct observation of the price and its behaviour to tell you when to trade, this will inevitably be less true. In real-estate it is said that there are three important elements : location, location, and LOCATION.
In trading and investing there are also three important elements : price, price, and PRICE.
Nobody has to take my word for any of the above. The whole point of the "Market Skill-Builder" package is that the program gives the user the opportunity to learn, practice, acquire effective realistic experience risk-free. Ready to order ? - click here
Your comments on, questions about and criticisms of the above material will be very much appreciated. Please click and send us a message!