/biz/ - Business & Finance

>>12625129

TA based swing trading is best paired with a comprehensive risk management strategy. It's not 100% of course, and different approaches often need to be taken for different types of stocks in order to account for their tendencies. For instance, I don't trade consumer cyclicals the same as I trade the dude weed and don't trade commodities the same as either.

I think the main confusion about TA's efficacy has to do with missing the bigger picture. TA is half a trading strategy at best. I would even go so far as to say it's a third of one, with fundamental analysis + news/rumor fishing, and risk management/order structure/cost averaging making up the other two thirds.

Take trading oversold bounces, for example. Not every stock is going to be a good candidate for that. You want a company that is oversold for technical reasons rather than fundamental. Or an imbalance between technical bearishness vs. fundamental weakness. Ie, stock dumped way harder than called for in response to an earnings miss. Recent example of that imbalance I traded/am currently trading is Altria. Altria has problems with decreased tobacco sales, however, they tanked really hard in the market downturn far beyond what should be reasonably expected. They have also diversified in to the dude weed (HOT sector) and vaporizer tech/patents.

Now, I'm not a pro and I'm not rich. This is just my feel on it. It has worked the last three consecutive years, beating the index gains all three.

>>12034722

I say day trade as I don't want to play if the earnings aren't good and I'm not so fussed with this particular outfit that I want to hold over the weekend. Last week I bought in on a swing setup but got stopped out when it dropped below green trend line. That's about the shape of my feel on it.

It's back up now.