how far TA is useful?

#1
yes I sometimes use the technical analysis even though my knowledge is only as a beginner. I try to use RSI,MDA etc. But I wonder how far the technical analysis can be used by an investor (not day trader) particularly when the index falls by 5 to 6% in a day. I need some clarification by a Technical analysis guru. thanks.
 

sudoku1

Well-Known Member
#3
A long term investor uses fundamental analysis rather than technical analysis.Technical analysis is more useful to traders.
TA is more useful for long trm invstrs also.....just think when long term charts of evry chartist of the world had given a sell @ difrnt levels..along with it ,even the long term invstr exits.....the results r in front of us....

TA is just like the lines on our palm .....:)
 

NOMINDTR

Well-Known Member
#4
yes I sometimes use the technical analysis even though my knowledge is only as a beginner. I try to use RSI,MDA etc. But I wonder how far the technical analysis can be used by an investor (not day trader) particularly when the index falls by 5 to 6% in a day. I need some clarification by a Technical analysis guru. thanks.
Caution : I am not a technical analysis guru :)

An investment decision must be taken on fundamentals. Not on technicals.
A smart investor never keeps the money sleep for years, smart investor uses technical analysis to capitalize from every move of the market.

Enter as an investor. Churn your portfolio as a major trend rider.

Good wishes
 
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learn2trade08

Guest
#6
just a humble question..did fundamentals warrant a rnrl at 250 in jan or was it technicals?
i am nill in fundamentals so anticipating a reply
thanks in advance.

Fundamentals will always be the driver of the long term, technicals will be the map they use to chart a course to get you there.
 

AW10

Well-Known Member
#7
Fundamentals work in long term.. but in long term, we all will be dead. I started as great believer in Fundamentals but after consistently loosing money thru FA based trading, now I give more weightage to TA. Here I can define my timeframe, do my analysis and make trading decision in my timeframe.

For most of my trading, TA is the starting point. but there is lot more to trading then just TA.
More you know about TA, more confuse you will be about the analysis because, when one indicator gives buy signal (say MA Crossover), you can find another indicator (say Stoch/RSI) givig sell signals.
Thats when you start loosing faith in TA. The way out from there is to define your favourite indicators, understand them beyond typical academic deifinition given in various TA books, develop your strategy, backtest them and gain confidence in your indicator.

Once you have a profitable strategy that suits your personality, then You can very well forget all TA and still make money in the mkt based on one single strategy.

Happy Trading and long live TA.
 

NOMINDTR

Well-Known Member
#8
just a humble question..did fundamentals warrant a rnrl at 250 in jan or was it technicals?
i am nill in fundamentals so anticipating a reply
thanks in advance.
Though I don't know, I always wonder there a lot a GREAT companies other than Reliance group.
 

oxusmorouz

Well-Known Member
#9
To comment on one is useful and the other is not, one must have studied the content in its entirety and understood it. Many experts who post have least bit idea of either.

By hearing their opinions on this is good and that is bad, this is useful and that is not, you are merely confirming to their ideas, without any thought of your own. If the source of their decision making is anything but objective and rational, which is most cases it is, it is more likely to cause more confusion than help clearing yours. That can be particularly destructive in this field of business. If you say that you will choose the opinion that sounds most reasonable, it means that you already have a structure set up in your mind and are merely choosing an answer which you want to hear.

Instead of wasting more of your time, wouldn't the best way be to find it out yourself by experimentation?
 

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