RDN 12.5% 4.5¢ raiden resources limited

@asxgrub wrote: "I'm more of a FA guy than TA."Hi @asxgrub,...

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    @asxgrub wrote: "I'm more of a FA guy than TA."

    Hi @asxgrub, Thank you very much for your reply.

    Yes, same for me, Fundamental Analysis is my core. HOWEVER, when I read Nicholas Darvas' book, for the first time he lead me to realise that Technical Analysis has some value too. Darvas suggested that there can be things happening within a business that cannot be apprehended by the general market (especially things that are privy to "insiders" who can then take action in the market). Technical Analysis might be able to shed some light via trace signals of events that the general investor cannot know. Thus, T.A.'s worth.

    "the smaller spec end, the market can sometimes be too volatile to apply Darvas".

    Yes, I'm cognisant of that. I am only interested in applying the Darvas method to mid and large cap stocks. The Darvas approach is a price momentum strategy and I'm aware of criticism that Darvas may have lucked-out by benefitting from the 1956-57 bull market. It has been suggested that the Darvas Box method is not suitable to price-volatile situations, and that certainly is the segment of the market that RDN occupies.

    "the best bit is it let's your winners run".

    So, I'm still interested in how you practically use Darvas in your decision-making. Perhaps you just deploy the discipline that when a stock comes off a run and the price drops through the floor of its topmost "Darvas box", you coldly and detachedly exit your position?

    Best wishes, Jomo
 
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