On a thread about Fibonacci trading I posted this:
I don't use technical analysis because the mind is designed to see patterns as a means of self preservation and sometime sees patterns that don't exist.
I don't use fundamental analysis because no matter how much I read there is always more and new information that will effect my investments.
So I have a few investing rules:
1)I trade solely on price.
2) I buy on price drops and sell on increases.
3) Since I buy on price drops investing in funds is safer. They are less likely to go to zero.
4) I have a list of what I want to own for the rest of my life.
5) I don't try to predict the direction of the market or the securities that I own. I react to the movement of the market instead. I don't care which way it goes.
6) On a simplistic basis if I have a $10,000 allocation to a security I will sell $2,000 if the value reaches $12,000 and buy $2,000 if the value drops to $8,000. in this way I am always buying more shares that I sold. I gradually raise my set point by the present I buy.
Not always
Toofuzzy
Take the road less traveled. It will make all the difference.
