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kookiekook

12/20/09 5:13 PM

#20589 RE: fatherofseven #20588

The first item to consider when using charts (technical analysis) for investing is to determine the type of trading you do. That will determine which timeframe the charts should cover. As one I-hubber would say "Plan the trade, and trade the plan"

Trade Type/Holding period/Chart
Scalpers/seconds to minutes/1,5,& 15 minutes
Day Traders/minutes to hour/1,5,60 minutes
Position Traders/hours to days/60minute, daily, weekly
Investors/days to weeks/ daily, weekly, monthly
Institutions/ Weeks to years/ weekly, monthly, yearly

Most trades discussed here would fall in the Position Trader and Investor time frame, thus information from looking at minute charts or yearly charts will not be as useful as information from a daily chart. It should also be noted that most trades here are based on Fundamental Anaylysis combined with Technical Analysis

The other thing to consider is that stocks that are pinkies or OTC are much more volatile, less predictable and more subject to whim of external factors than Big Board (NYSE, AMEX, Nasdaq) listed stocks. A good reason to avoid them, although they do offer the opurtunity of good returns when you choose correctly.