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Author: nukejohn Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 65863  
Subject: Re: My Investment Philosophy Date: 7/17/2004 11:19 PM
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There is no doubt that in any trending market, your system will work just fine. Its weakness IMO, is a choppy market (or sidewise market) as that will have you buying and selling like crazy but really getting nowhere fast.

Don't forget we start with stocks we have some reason to believe are going to be going up (our long watch list)....or going down (our short watch list). Because I didn't get much feedback as to short candidates I decided to just go with one list. The shorts will still stick out if they are extremely overvalued and start dropping on high volume.

As I said before, my system is what I developed based on my study of TA, which included a detailed study of moving averages. I decided to use the 50 dEMA for my system based on numerous factors. I experimented with the 200 d Moving average as well. I agree you can do this with a 200 d EMA or a 30 week MA(which is what Weinstein advocated) or 100 day EMA or whatever, but 50 d EMA will find trends a lot quicker than a 200 d MA. Of course that means you will be stopped out for losses more frequently...but your gains will be larger percentages.

With regards to Taser, my system would have gotten you out around 38 and back in around 32, so NJTA would have definitely been better for TASR than using a 200 dEMA that kept you in the whole time.

NJ

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