Sunday, May 21, 2006

Technical Analysis

One of the investing discussion boards in which I participate, the paper assets group of NYC Cashflow , has been having a spirited discussion of exit strategies for stocks, particularly TRLG, which I have already written about, and which is one of my major holdings.

As a matter of strategy, I focus almost exclusively on the fundamentals of an invesment, but I have found that this sometimes leaves me in an investment too long, when a tactical exit would preserve my gains, and give me an opportunity to reenter later at a lower price-point (not buy and hold, in other words).

Judging this, however, is difficult. Charting, or technical analysis, attempts to decipher appropriate entry and exit points based on price movements, and what they suggest about supply and demand of a security.

Ed Patisso from NYC Cashflow shared this link, and it appears to be a very good resource.

1 comment:

  1. Also check out Hip Egg, they are always talking about the patterns in stocks (in relation to buy and sell signals).