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Thursday, July 9, 2009

TA & FA

A long time since I have written into this blog. Many of my ideas has changed since the last posting. I shall summarize mainly in points instead of writing one whole long paragraph.

1) I have found renewed interest in Technical Analysis. :)
Basically, before my renewed interest, I thought all there was to TA was just looking at indicators, candlesticks, and finding patterns. Then thanks to Market Talk at CNA forum, I'm impressed by the vast knowledge of the forumers in charting channels, doing Fibonacci analysis, and best of all, applying the Elliott Wave Principle. It really opened my eyes to a new world in TA such that I begun re-reading up and hungrily searching for data on Elliott Wave counts!

In addition, I have learned a lot from many kind forumers at Market Talk CNA forum.


2) I have done a little bit of short term trades along with buying more blue chips. In addition, I have offloaded Darco when a certain financial institution did a classic pump and dump (in TA). My portfolio is rather different from the last time I posted it. Will do an update soon.


3) I have finally realised that one of the most effective ways to earn is to couple TA together with FA. TA is useful in helping to identify a good time to enter, while FA is used to identify good stocks that will generate good returns over the long run. Used properly, we can "time" the market effectively while buying good and undervalued stocks, hence multiplying our rate of return. In a way, the probability of going wrong is reduced.

I shall try to post some charts while polishing my TA skills. Hopefully I will have time to learn more FA as well at the same time.

Yet... even though I'm more into TA at the moment, my strategy for improving cashflow by dividend investing remains. Will delve more into this in a later post.

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