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tonersweat
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28-Mar-2006 11:29
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Hi Singaporegal , I am confuse with this paragraph: (1) I only look for stocks that are less than $1.5 or above $4.0 in price. Because I think TA doesn't really work for stocks <$1.5. For stocks >$4.0, I think its not worth investing in those. The profit margin is not there. |
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singaporegal
Supreme |
28-Mar-2006 10:52
Yells: "Female TA nut" |
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Hi Nostradamus, Yeah.. I mean fundamental analysis, not financial analysis. Typed too fast. Hee hee... Anyway, TA is just my own method of investing. I stick to it because it works for me consistently and it suits my investing style. But i know some friends who think TA is full of rubbish and they swear by FA. Hahaha. |
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Nostradamus
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27-Mar-2006 23:45
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Hi singaporegal, By FA, I think you mean Fundamental Analysis rather than Financial Analysis. |
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singaporegal
Supreme |
27-Mar-2006 22:10
Yells: "Female TA nut" |
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No you're definitely not an idiot. Its actually a very very good question. The simple answer is this - I filter my stocks using these criteria: (1) I only look for stocks that are less than $1.5 or above $4.0 in price. Because I think TA doesn't really work for stocks <$1.5. For stocks >$4.0, I think its not worth investing in those. The profit margin is not there. (2) I also look for stocks who have an average traded volume of 1000,000 per day. By combining (1) & (2), there are only a basket of about 20-30 stocks or so that meet my criteria. In the weekend, I scan about all 20-30 charts to look for opportunities and I identify a few potential ones. For those potentials, I monitor them closely over the weekday. This is how I do this. BTW, a user by the name of pikachu regularly posts a list of Oversold and Overbought stocks on this forum. Very helpful to me! Allows me to narrow my search easily. |
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tonersweat
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27-Mar-2006 20:35
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I am a idot, wonder how do you pick stocks and do the comparision. There are tons of stock in the marker. Do you go through all the listed stock one by one. |
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tonersweat
Member |
27-Mar-2006 17:17
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Thank you Singaporegal for your help . Will go to the research section to learn more about it. |
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singaporegal
Supreme |
27-Mar-2006 16:44
Yells: "Female TA nut" |
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I'm a pure TA girl. But other investors rely more on Financial Analysis (FA) instead rather than TA. I think you should choose a method that suits your personality and beliefs. |
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singaporegal
Supreme |
27-Mar-2006 16:42
Yells: "Female TA nut" |
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Hi tonersweat.. I think ShareJunction has a write-up about this in the Research section. ok I'll try to explain anyway. -- Accumulation/Distribution -- This graph measures the buying/selling interest of a stock. If the line is trending up, this means that the buying interest is increasing. Opposite for selling. When a divergence occurs (meaning that A/D line trending up but STOCK PRICE is stagnant or trending down), this represents a good buy opportunity. The converse is true for when looking for sell opportunity. -- RSI -- You interpret the RSI the same way as the A/D line. --Williams %R-- This indicator measures oversold/overbought conditions of a stock. If W%R < -70, its taken as oversold. If W%R >-30, its taken as overbought. A perfect BUY opportunity is this - (1) A/D line uptrending (2) RSI uptrending (3) Stock price downtrending (4) W%R was RECENTLY oversold AND is now uptrending towards neutral region ( W%R between -30 to -70) Took me a long time to type this out... hope it helps! |
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tonersweat
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27-Mar-2006 16:32
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Singaporegal , this is a good tips, but I am a idot investor. Can you elaborate more about the distribution/Accumulation, RSI and Williams %R technique. |
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scotty
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27-Mar-2006 13:15
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I just follow what my broker tells me! Hahaha. |
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hchuan
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27-Mar-2006 10:24
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this is a good post!! give me some insight to TA for a noob like me =D |
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singaporegal
Supreme |
27-Mar-2006 09:48
Yells: "Female TA nut" |
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Novocaine was asking me about my TA techniques.. so I thought I would share with everyone else and we can compare notes and learn from each other! I mainly use this step by step approach to find stocks to buy- (1) Using Accumulation/Distribution to look for divergences in price and the A/D line. (2) Once I find stocks in (1), I then look for double affirmation using RSI. If RSI is uptrending, its just confirms (1) (3) Once (1) & (2) are established, I will use Williams %R to determine if its too overbought to buy. Ideally, the stock should be oversold. So, once (1), (2) and (3) are all in place, I will buy the stock. That's my technique. So far, my accuracy is about 70-80%. I buy and sell the stock within a period of 2-4 weeks. Profit margin is about 15-20% overall. |
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