MXI was a firm believer in the buy and hold strategy until the...

MX

I was a firm believer in the buy and hold strategy until the OZL debacle and the GFC.

I now however believe there is a better way of doing things and I am in the process of developing a model to protect me from idiot bankers, chairman persons and CEO's.

It is using a combination of things including economic analysis (us and china), fundamental analysis, technical analysis and stop losses.

I am now a firm believer that you should cut losses short and let profits run. However you need to know when to sell and drawing trend lines help in this area. My trend lines and the way I have been taught are slightly different to yours.

I also believe that Fundamental analysis alone may tell you what stock to buy but not when to buy. Rather you are far better waiting for confirmation as the fundamentals might be great but the stock continues to be unloved and sold down.

Having said that like you the major thing I focus in fundamental analysis is the 1, 2 and 3 year growth forecasts of stocks.

I am happy to post more about this later if people are interested. Happy days tomorrow hopefully with a break out above $1.60.