The Chart is Always Right...

For those of you who actually read my blog, you must have already realized that I do not rely on fundamentals. Technicals are my game and they are advantages in this game. I am still an amateur but I am learning fast. I have been profitable since I started trading, even during in the midst of that little bear rally almost a year ago. But I am still learning. I am learning to control my emotions...learning to be more disciplined and adhering to rules and strategies. I don't know if most of the other traders are using advanced software to find their picks or inside info, or whatever. My technique is rather low tech and I do not waste my time on fancy, shmansy crap. My technique is not 100% guaranteed (I have several bad picks as well of course). The technique I use would also probably not work for everyone. That is because the way I interpret a chart may differ from how someone else may interpret a chart. They really are more subjective than objective. This actually makes me think about an incident a few months ago. The incident involved CRM and the countless hoardes of traders who were short. I remember trying to explain to them in the Yahoo board that they were wasting their time and that they should cover their short position before their losses escalate. Well to make a long story short, they didn't take this advice too well. They were furious with my opinions and advice and so, they decided to heckle me. I even tried to explain to them that the chart pattern, which resembled a cup with handle, was bullish and meant that an upside breakout may occur if the conditions were right. Well they heckled me about that too. Months later, the stock is at 50. I was recommending it when it was at low 30's. The whole point of the story is, no one can read a darn chart. And even if they can, they allow fundamentals to cloud their judgement. The shorts defense was that the P/E Ratio was too high and that the insider selling was a signal to sell and short. It didn't matter. The chart is always right.