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Len...
First and foremost, I use TA and price as my trading tool. At times my
holding period may only be a couple of days but why shouldn't I look at
the longer term data? My success has increased generally every time I
took advantage of any piece of correlating information.
Why don't traders use any information that can even in the slightest way
increase their odds? One needs every edge they can get. If I
find(through research and testing) that a CEO eats a tuna fish sandwich
at lunch and the next day his company's stock gaps up, I'll use it! I
don't want to "handicap" myself by ignoring data. It's like going out
into a forest that is infested with savage bears armed with a fly
swatter. Isn't there a saying about this? Something like "Armed for
bear"? Anyway, what's wrong with trading the price but having the
research behind the choice of issue. You're right on when you said it
can "minimize downside risk".
Regards... John
Len Olson wrote:
>
> Dear Paul,
>
> The reason I concentrate on fundamentals is to minimize downsize risk.
> If the company is solid financially AND makes timely SEC reports, to me
> it means that that it is a real company that is either making money or
> is in a position to weather a storm.
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