current price movement, page-29

Hi Pillip_K,

Thanks very much for your comments. I try to keep it as simple as possible without detracting from the overall message.

I also depend pretty heavily on Fundamental Analysis like you, but I use TA to help me determine the best entry and exit levels for short-term trading, based on expected turning points for price. I find the pitchfork method is accurate around 70-80% of the time in identifying turning points. So for me, it's really a case of using research and FA to determine what to buy, then TA to determine when to buy/sell.

I'm also conscious of the fact that most of the very large fund managers and other market movers have a room full of technical analysts providing advice on buying and selling opportunities, and a lot of trading is also computer based. Since most TA advocates use similar methods, and computer based trading is controlled by rules (i.e. derived largely from TA), it makes sense to me to understand those methods and therefore be able to anticipate when market buying and selling based on those methods will kick in.

For W1: In answer to your question this morning, I follow about 40-50 stocks on a regular basis with updates to their charts every night. That group contains a high proportion of junior resource companies. BRM is a long-term hold for me (since the 27 cent days of YML) but I trade most of the others on a short-term basis using fundamental analysis and pitchforks as described above.

I retired recently as I found that my job was interfering too much with my trading and I wasn't able to either one properly. So now I play golf on days when the market is slow, rather than attend meetings. Works for me!

Good luck and take it easy.

Regards,
Bones