A.I.M. Users Bulletin Board

[Neil Scott]

Hi Grabber,

I lost my faith in all these technical analysis indicators when I began testing them and found that they are no better at predicting price than a simple toss of a coin.
What I found when it came to talking to others that were into TA was that their objectivity went out of the window.
In all the testing I did over the years I found that as all the indicators are based on a derivative of some part of the price and volume that they can have no predictive power whatsoever, it only appears so in certain well chosen cases.

I am now leaning to a more fundamental analysis side of the fence after all, one of Buffets sayings about stocks " In the short term they are a voting machine, in the long term they are a weighing machine" applies.
So, you can AIM a stock that has no income and is burning through cash but the stock price is rising on expectation and speculation.
The money collects in your account as you sell out, but when expectations are not met and the price slides you end up giving all your profits back to a stock that essentially has no value.
I have done that very thing on several occasions. I must be a slow learner.

Regards

Neil