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Hello Ira...
The first line of my post stated what I use to trade...
> > First and foremost, I use TA and price as my trading tool.
Hope that clears it up, I don't use opinion. I agree with you, if you've
got an opinion you're in big trouble.
Best... John
Ira wrote:
>
> I have found that by doing the type of research you are doing, reading the
> paper and listening to the news gives me an opinion. Any time you trade with
> an opinion it is dangerous. If you are a technician then the chart and your
> system should tell you which direction to trade and the probability of
> success. You can make as much in a bull market being short as you can being
> long. Every day there are stocks that are down. every day there are stocks
> that are hitting 52 week lows. The method proposed seems to indicate that he
> is looking for solid companies to only trade on the long side. This can also
> be dangerous because, as they say, when they raid the house they take the
> beauties with the dogs. If that is his trading style and it works for him
> then that is all that counts. He shared it with us and I believe that there
> are some people on this list that may very well benefit from it. It is also
> the right of those who disagree to express an opinion for the other side. I
> believe his system will be very costly if and when a bear appears in the
> woods. Good trading, Ira
>
> John Rastutis wrote:
>
> > 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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