|
PureBytes Links
Trading Reference Links
|
Carlos,
There are no hardened rules that say you must use a certain type of
indicator with a particular stock.
The trick to using indicators is to understand what they are telling
you.
Let's first start with some simple indicators. I want you to make a
chart with price in one window. Then I want you to set up the
following indicators in individual windows:
MACD set at 12,26,9 and a horizontal line at 0
Stochastic set at 14,3,5 and horizontals at 75 and 25
RSI set at 14 with a horizontal line at 70
Next, take a look at the stocks that you purchased and what the
indicators were saying at that time.
For SUNW the MACD and STOCH were declining
For YHOO the indicators were at a peak its what we call overbought
For EBAY the indicators were again overbought
Wouldn't it have been better to have made your purchases when the
indicators were increasing or when they were coming out of an
oversold (from the bottom) condition?
Okay, here's some homework for you. Look up oversold and overbought.
Then look up support and resistance. Next, get a book on technical
analysis. John Murphy has one of the best. Its called "Technical
Analysis of the Futures Market". Get your hands on a copy. Check with
your local library. Doesn't matter that its about futures...its more
about indicators.
Preston
--- In equismetastock@xxxxxxxxxxxxxxx, "carlosarturosierra"
<carlosarturosierra@xxxx> wrote:
> Preston,
>
> Thanks a lot for your prompt response
>
> The positions are the following:
>
> Date Symbol Price Qty Type
> Jan 5/2005 SUNW 4.69 5700 Long
> Jun 3/2005 YHOO 38.76 500 Long
> Aug 2/2005 EBAY 44.80 800 Long
>
> I would like to learn which kind of indicators apply for this stocks
> in order to take a correct decision.
>
> Please let me know any suggestion or recommendation about it.
>
> I really appreciate your help in this issue.
>
> Regards,
>
> Carlos Sierra
>
> Carlos,
>
> TA is not a quick study. You will need to devote a good bit of time
> to learning it correctly. For now close your trades if they are
> losing.
>
> Next, tell us what 3 positions you took. Maybe we can give you some
> insight into what's going on with them.
>
> Finally, get yourself some good resources...books that explain TA.
> There are any number of good ones available and I'm sure several
> members of the group will happily share their thoughts as well. As
> you learn the methods paper trade them until you are comfortable
with
> the method. Remember that just because an author says his system is
> the cats meow or the holy grail don't believe it until you've
checked
> for yourself.
>
> You should concentrate on system development and money management.
> Once you have conquered those aspects you can look into getting back
> into the market.
>
> regards,
>
> Preston
>
> --- In equismetastock@xxxxxxxxxxxxxxx, "carlosarturosierra"
> <carlosarturosierra@xxxx> wrote:
> > Hello Everyone,
> >
> > I have been making trades for two years in a manual format using
> > fundamental analysis but rigth now I am starting to use Metastock
> and
> > I think it is better to take decisions base on technical analysis
> and
> > avoid emotional decisions.
> >
> > Right now, I have opened three long positions and all of them are
in
> > the lost zone.
> >
> > I would like to use this powerful tool in order to choice the best
> > time to sell them and try to have profit. So that I want you can
> coach
> > me in this beginning process.
> >
> > I look forward for your advise.
> >
> > Regards,
> >
> > Carlos Sierra
------------------------ Yahoo! Groups Sponsor --------------------~-->
<font face=arial size=-1><a href="http://us.ard.yahoo.com/SIG=12h4jomom/M=362343.6886682.7839641.1493532/D=groups/S=1705375617:TM/Y=YAHOO/EXP=1123619264/A=2894354/R=0/SIG=11qvf79s7/*http://http://www.globalgiving.com/cb/cidi/c_darfur.html";>Help Sudanese refugees rebuild their lives through GlobalGiving</a>.</font>
--------------------------------------------------------------------~->
Yahoo! Groups Links
<*> To visit your group on the web, go to:
http://groups.yahoo.com/group/equismetastock/
<*> To unsubscribe from this group, send an email to:
equismetastock-unsubscribe@xxxxxxxxxxxxxxx
<*> Your use of Yahoo! Groups is subject to:
http://docs.yahoo.com/info/terms/
|