Sunday, April 24, 2011

the Daily Note - Your Technical, My Technical

TA is different from FA .. but also my TA is different from your TA. In other words, there are many ways to use or abuse TA. By abuse I mean overuse. It took me a while to realize that I don't need all the TA indicators that is out there, but I do need to understand what each TA indicator does.

In the way I learned TA is much the way I like to learn anything including the language I am currently using. I like to watch, listen, absorb, and find where it fits in my brain and how I can apply it. Other people learn the easier or faster way perhaps. Which is to book learn, read, study and then apply what was learned. Don't worry, I won't put you down for it but I do tend to believe my way discovered fire and also killed a few along the way. In other words, your way of learning is just as fine as mine.

The beauty of TA is that there are many indicators that can be used alone or in combination. They all point out a vision or a possibility. But how you first arrive at the vision is the real question. Do you look for the vision or are you lead to the vision? Looking for a vision means searching without diversion, or seeing a chart without an indicator and searching for the possibilities within. Being led to a vision is looking at a chart with indicators embedded, which leads to a vision that or those indicators reveal.

If you like to be lead, it is best to first learn what each indicator does and how it performs by itself. So if you want to see how well the Moving Averages actually predict the movement of the stock, than you need to first use them by themselves. That is true with or without what someone else is telling you.

Each TA has it's strength and weakness therefore they will not always hold true. There are no absolutes here and it's why more than one indicator is usually used to make up the whole picture. As you gather your knowledge of each indicator, you can start combining them to see how they coordinate with each other and how one may support the other, illustrating the strength or weakness in movement.

In such a way do you build your own set of technical indicators and in such a way do you find your niche, or style in the trading world. Our set of indicators may look different, but we may arrive at the same place regardless. So don't be too judgmental or too concerned about what others are using. Watch, observe and learn, but don't get killed along the way and always stay true to yourself.

Happy Trading, Living and Dancing and
Happy Easter

The Daily Pick - AAPL a day

©DayTrading with Anni 2011 All Rights Reserved


Vincent Ira Harshey said...

So true, couldnt be said any better. Couldnt help but feel how that relates to me and past situations, hopefully not future ones. Take heed all!

Vincent Ira Harshey said...

Also know as weasel23 on

AnniDayTrades said...

Thanks for your comment, we all need reminders of the steps we have to take to get to our destination. Each step is new and each one takes us a bit further to the goal. Anni