As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Sunday, 3 October 2010

Technical Indicators? (2)

Read? Technical Indicators?

Read? Who Moves My Market?

Read? Which Theory of Market Behaviours to believe?

Technical Indicators are Good?

The problem with most technical indicators is that they tend to have adjustable parameters. Some even have 2-3 parameters to adjust.

More often or more, we tend to keep adjusting these parameters and do some back-testing on our favourite stocks until we manage to "fool" ourselves that we got a "right" system.

But after a series of losing trades, you may begin to realize that the "right" system doesn't seem right anymore. You may then turn to the "Guru" who may have previously give you the ideas on these indicators for help.

The Gurus always will have some "useful" feedback or suggestions for you to re-adjust the parameters and to fine-tune the system and you are back to do more back-testing to get another "right" system.

Sound familiar, right? You like MACD and ADX. Me too. There are three parameters to adjust and have fun. But, I have stopped doing it for quite sometime.Good luck!

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