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It's "pure ignorance" not to conduct some form of technical analysis before allocating capital...

It's "pure ignorance" not to conduct some form of technical analysis before allocating capital into any position, even for fundamental investors, ChessNWine says. "A little bit of due diligence looking for a relatively healthy chart - even for a value investment - will go a long way... Blindly buying and holding, even quality firms, is textbook laziness."
Comments (8)
  • OptionManiac
    , contributor
    Comments (3383) | Send Message
     
    Very few individual investors have the time or the knowlege to do a technical analysis.
    3 Jan 2011, 02:16 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    Very Good point....I consider myself a good chart reader...but it took the better part of 5 years to develop those skills.....those who don't or can't invest the time to develop their own skills would do better not to try. Stick with solid allocation / diversification and prayer....lol
    3 Jan 2011, 02:21 PM Reply Like
  • radicall
    , contributor
    Comments (534) | Send Message
     
    What makes a broken chart turn around? say HPQ or CSCO?
    3 Jan 2011, 02:29 PM Reply Like
  • Stoploss
    , contributor
    Comments (1727) | Send Message
     
    I thought blindly buying and holding was the norm in a QE market. I don't know about the hold part, but the blind buying sure is taking place right now.
    3 Jan 2011, 02:30 PM Reply Like
  • Stephen Castellano
    , contributor
    Comments (93) | Send Message
     
    If I had followed that advice I would have missed huge runs in stocks such as FCX, FOSL, LYB over the last few months, and would have sold my RES and UAL positions last week. LOL indeed.
    3 Jan 2011, 02:31 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2078) | Send Message
     
    Its pure ignorance to say that everyone regardless of their investing/trading strategy, goals, and time frame should do something.

     

    Looking at the article we need to consult the 20, 50, 100, 150, AND 200 DMA, wait for a spike in buy volume. This is for EVERYONE including someone whose investing horizon is in decades apparently.

     

    Though really thats just a guess. He doesnt really go into it other then we need to use technical analysis. Great now just about 100 indicators and oscillators to pick from.
    3 Jan 2011, 02:32 PM Reply Like
  • jroliver77
    , contributor
    Comments (78) | Send Message
     
    As brash as he is initially he also mentions near the end that checking up on the chart will go a long way. This is very true and it doesn't take a whole lot of time. The market is a group of buyers and sellers and to not use the chart that is created by the price action to me doesn't make any sense either, I was just saying the other day I would be scared to throw money into a stock without doing all of my research which includes technical analysis.
    3 Jan 2011, 02:45 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    Really the problem is not that many or most individual investors do not use technical analysis, it's that they don't use any type of analysis. They look at what's hot on CNBC Fast Money or Cramer's show, expecting they did their homework before recommending them.

     

    Both fundamental and technical analysis are useful, but that requires a lot of time, patience, trial and error before you understand it. Something most people don't have patience for.
    3 Jan 2011, 02:47 PM Reply Like
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