(Apologies to Natalie Wood and the rest of the cast of West Side Story).
I bought 1000 INTC @ 74 1/2 last week with the idea of putting a limit order to sell at 78 1/2. My thinking was that INTC would bounce off its support at 74 1/2 and with a few weeks be back up close to 80 again. When INTC decidedly broke through the support I sold (taking a $2000 loss) and bought something else. Looks like the orignal plan would have worked out. Oh well you live and learn.
Apparently TA rules like support becomes resistance may not be sufficiently solid on which to base short term trades. Or, more likely I need more practice (this was my first attempt). Well I made a second attempt that I anticipate will yield $10K from a 43K investment in 2-6 months. We will see what happens.
Take it from me, yes I am practically an expert in TA also guys, a lot of TA stuff doesn't work quite frequently.
Fundamentals can spoil any TA prediction.
One thing is certain about stocks.
If you hold good companies long enough you will never lose a penny.
Buy stocks that are leaders in their industries, with high ROE's, and brand names, hold em as long as their longh term growth projections don't look too crappy, and ride the market until you have millions.
It works every time.
Keep an eye on Gillette it is setting itself up for a good buying opportunity right now.
Another trick I use to pick stocks is one question.
(don't tell Warren about this)
If the stock performs half as well in the next ten years as it did in the last five years and I put it in my portfolio, will my portfolio be able to average 20% annually.
When picking stocks, you also need to make sure it is a company that investors buy, steadily moving the capitalization upwards.
PS Warren told me he never used a chart in his life to pick a stock.