I mean it when I say that. While plastic silverware is fine for picnics and parties, it is totally inappropriate in a surgeon's hand with an open brain in front of him. Not only are plastic forks built incorrectly to perform delicate surgery, their cheap construction may actually cause further injury to the patient. I don't know about you, but I sure wouldn't want someone prodding around inside my head with one of those things!
Ok, I'm joking. The truth of the matter is that you already knew that plastic forks were not meant to be used for brain surgery. It was obvious. In fact, it was so obvious that it seemed silly when I told it to you.
You might have even laughed.
But what if I told you that - right now - you are doing almost the exact same thing as a surgeon operating with a plastic fork? Something just as inappropriate and just as harmful from a financial point of view. I'm not joking any more. Let me tell you what I mean.
Your current charting software probably has a bunch of technical indicators built into it. Moving averages, RSI, Stochastics. There are hundreds of them. Thousands of traders rely on these tools every day to help them make investment decisions. (And thousands of traders blow out their accounts each day, too.) What these traders probably don't realize is that if those tools were people, they would be dead by now.
Yes, those indicators are old. In fact they're dinosaurs. They were invented in the days before computers even existed. Even before calculators were around! They were designed to be calculated by hand, using simple formulas and daily closing prices. Add some numbers up and divide by something else. Any elementary school student can easily calculate any of those indicators in only a few short minutes. We're talking kindergarten math here.
Modern Technology
With today's trading computers running at Gigahertz speeds, don't you think that it's time traders started using some more advanced formulas in their trading? There's no reason to keep things so simple anymore. We've got the speed and the power to calculate anything we could possibly ever want to, so why are all these charting programs stuck with the caveman tools?
Details...
http://kv.iwarp.com/wave.html
Kigo Kare
Stock Broker of long standing
Every day I hear from the "experts" on CNBC-TV and... Read More
Disclaimer: Please note that I do not necessarily purchase, own,... Read More
Unfortunately, most of you who are reading my column are... Read More
As one of my regular readers you know I have... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
Suppose your position has made a big move and you... Read More
Starbucks earnings are up again and so is their stock... Read More
One of the great "secrets" of successful people is discipline... Read More
If you're a normal human being, your need to feel... Read More
As I said in Part I everyone in the insane... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
I am sure that if you have a brokerage account... Read More
On November 17 I bought 7 different mutual funds and... Read More
Before you buy another car you walk around the lot,... Read More
When the stock market is going up and all your... Read More
What can I expect to make my first year of... Read More
Having lived aboard a sailboat for 2 years I was... Read More
Four blind men were asked to give a description of... Read More
The Winter Games for the Olympics are coming up soon... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
This is an extract of an article which was first... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
On Monday, November 25, 2000 Investor's Business Daily listed on... Read More
Have you seen all those big full page ads for... Read More
Before you embark upon a journey of trading stocks or... Read More
We have two candidates for president that have really different... Read More
Sometime in the third quarter of 1997, someone told me... Read More
You remember the story about the frog that was put... Read More
∙ Make every investment in the stock market a long-term... Read More
A few years back ? it seems like an eternity... Read More
Analyzing growth stocks is an important focus for any investor.... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
Checked your 401K lately? Going back to about a year... Read More
At some time in your life you have been on... Read More
(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Three little pigs went to the market to stock up... Read More
I continually hear from economists, talking heads, other market letter... Read More
Every year I go to the Money Show in Orlando,... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
Whenever I see mutual fund comparisons in the trade publications... Read More
People are always asking me when should I sell my... Read More
Carefully thinking through your goal as a trader is of... Read More
Duck! No I don't mean a quack, quack. I meant... Read More
I go to the Money Show every year to visit... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
In 1960 an engineer working for a watch company in... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
How many times have you said to yourself, "I'd like... Read More
Mutual funds are doing more and more to discourage investors... Read More
Last time we looked at the real performance of the... Read More
Stocks & Mutual Fund |