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umiak

08/26/12 10:28 AM

#2994 RE: No-dough-go #2991

All one needs to do is look at the effects of a poorly written SA blog on a
strong contender for a first in class drug to understand that even the best DD
is at risk. I think ultimately success is rewarded and DD proves out
but for the sake of one's brokerage account one should use TA, including
volume and L2 to help protect capital.
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OldBen

08/26/12 10:38 AM

#2995 RE: No-dough-go #2991

Admittedly, would I miss the runs you named just based on a technical indicator? Sometimes, fundamentals trump technicals. Sometimes, depending on the time and the belief of the timing of the fundamentals, technicals trump fundamentals. Just guessing, I would not have passed on a trade purely because of failure to fill a gap. I might have passed on a trade because the RSI was over 80. Hard to say. I don't know if I would have passed on news being priced in. Depends on the quality of the news. Some technicals, however self-fulfilling they may be, have statistical importance to occur more often than not. As a strategy, it is better to play the percentages. I probably would have, despite missing an occasional gain.