Why Technical Indicators

The fighting goes on to rage among bargainers who
utilize technical indexes and those who prefer
cardinal information to set up new
places and to go out current positions.

The fundamentalistic believe in knowing all the
facts about a company such as as terms earnings
ratios, sales growth, merchandise margins,
management capabilities, cost of production,
cash flow, etc., etc. piece the technicians
could care less about the latter and desire to see
sector terms tendencies and rank, the Relative
Strength Index, MACD (moving average convergence
divergence), stochastics, tendency lines, chart
patterns and many more than esoterically evolved
indicators.

Which method is the best?

There is no Holy Place Grail of trading and what
critics of either method forget that it is the
bargainer who adds the concluding nicety that consequences in
net income or loss. The more than than old age a professional
investor have been working his program the more
successful he usually becomes. The unsuccessful
1s have got got long since gone broke and are no
longer in the game.

It is somewhat hard for me to give great
acceptance to fundamentalists as I am a technician
and have a very long profitable path record to
turn out it; however, I make sometimes look at some
of fundamentals. It looks that the longer term
bargainer can make well with a cardinal approach
because the timing to purchase or sell have a lag
time. He makes not purchase the underside nor sell the
top, but who does?

The technical bargainer will disregard the
informational attack with the usage of charts
and other indicators. Short term bargainers must be
technicians, especially twenty-four hours traders, as there
are no basics upon which they can assess
their bargains and sells.

Technical trading is based on the psychology
of the mass of bargainers that drive upon the hidden
values of the changing fundamentals. Charts and
other indexes state the of the long term
wellness of a company, country or trade goods as it
is shown in the terms action. The fundamentalist
expressions for the ground for a change to purchase or sell
whereas the technician seeks to happen the change
in the terms action to originate bargains and sells.

No matter what a cardinal trader’s position
he must be very patient. He may have got a position
on for years. During that same time period there will
be moving ridges of highs and lows during which he
stays changeless in his position. The technician
may merchandise the same equity respective modern times buying
the low of the moving ridge and merchandising the high
(hopefully). In trade goodss it is astute
trading, but when it is done in pillory and funds
it is called timing.

A combination of technical and fundamental
methods can give the best results. For the
average cat occasional bargainer I can only caution
him to be very careful. Very few intermittent
bargainers ever do money.

A successful trading attack requires
commitment. It is a business the same as owning
a shoe shop or hauling company. You must give
it your all.

Like any business you have got to work at it.