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- 22 December 2010
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Hi All,
Thought I'd start a thread on the upcoming ASX game as it Starts this week sometime (I think rego's close in the next day or so)
I've been doing a bit of reading lately and have a concept where I want to combine fundamental analysis with technical analysis because fundamental analysis generally get's you in too early and sells too early into an uptrend (it's just in the nature of the beast).
However, Technical analysis has no regards for value at all (and it has its own shortcomings such as false breakouts and being whipsawed in and out of trades).
Technical analysis is a pretty broad field so I mainly talking about trend following per se (Michael Covels books including, turtle traders etc).
I've seen a few educators say they combine fundamental with technical but by using fundamental, they namely use the P/E ratio which doesn't provide a goal post in terms of value (independent of share price gyrations).
My plan of attack for this year is to find good quality companies with high rates of return on equity (just a quick commsec search brings up a list in the asx top 200) as I have been reading roger Montgomery’s book valuable and found that quite interesting.
Then I have taken that list (which can't be exported but I've read other places that you can do a fundamental screen and export) and done a little further analysis and culling and want to find only those good quality companies that are in an uptrend (hence overlay trend following with using Incredible charts (which has really good education btw).
That's my plan of attack and is relatively easy and straightforward as I have limited time during the week to implement it.
Let us know your thoughts and how you’re planning on trading/investing the sharemarket game.
Thought I'd start a thread on the upcoming ASX game as it Starts this week sometime (I think rego's close in the next day or so)
I've been doing a bit of reading lately and have a concept where I want to combine fundamental analysis with technical analysis because fundamental analysis generally get's you in too early and sells too early into an uptrend (it's just in the nature of the beast).
However, Technical analysis has no regards for value at all (and it has its own shortcomings such as false breakouts and being whipsawed in and out of trades).
Technical analysis is a pretty broad field so I mainly talking about trend following per se (Michael Covels books including, turtle traders etc).
I've seen a few educators say they combine fundamental with technical but by using fundamental, they namely use the P/E ratio which doesn't provide a goal post in terms of value (independent of share price gyrations).
My plan of attack for this year is to find good quality companies with high rates of return on equity (just a quick commsec search brings up a list in the asx top 200) as I have been reading roger Montgomery’s book valuable and found that quite interesting.
Then I have taken that list (which can't be exported but I've read other places that you can do a fundamental screen and export) and done a little further analysis and culling and want to find only those good quality companies that are in an uptrend (hence overlay trend following with using Incredible charts (which has really good education btw).
That's my plan of attack and is relatively easy and straightforward as I have limited time during the week to implement it.
Let us know your thoughts and how you’re planning on trading/investing the sharemarket game.
I'm thinking the share price will bounce back next week, hopefully.
