Sensex

Tuesday, February 23, 2010

[Ways-2gain] 4 pillars of Trading.

 

4 Pillars of Trading


4 Pillars

I "see" the market through the lens of four primary metrics: fundamentals, technical, structural and psychology.

When viewed in isolation, each of those approaches has inherent flaws.

1. Fundamentals are best at the top and worst near a low.

2. Technical indicators often trigger buy signals higher, on breakouts, and sell signals lower, after a stock has broken down.

3. Structural factors — debt, derivatives and currency

effects — can self-sustain in a cumulative manner until such time they overwhelm the system.

4. Psychology, such social mood and risk appetites, can gain momentum until they snap under the weight of the herd mentality.



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Management lies in dropping the last alphabet: manage – men. still better, drop one more alphabet: manage – me.

Samir Kumar Shah.
9830405060

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