Forum Archive Index - June 2003

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

Hi Phaedrus,
 
>
> Snoopy,
>Your argument is illogical. Before I tackle your
>misconceptions, let's define a trend and a trend follower so
>that we are at least discussing the same things:-
>

Let's just stop here, because it is obvious we are talking around 
different definitions.  

My definition of a trend follower is simply someone who bases their 
buying/selling on what other people in the market are doing.

By contrast, a fundamentalist is someone who bases their buying/ 
selling actions on financial data that emerges directly from the 
investment target company.

By my somewhat broader definition of trend following, there is no need 
to have any knowledge of 'ema's or even own a computer at all.  As I 
said before I am thinking more in terms of the coffee table trader who 
buys because his mates are doing it, and because the share has 
bounced three times off an historical support level, as they 
remembered it by reading in the paper.   By the same logic this person 
might sell because everyone else was selling.   Now you may not call 
that trading, but it certainly isn't investing based on fundamentals.

There was a time when traders didn't have computers Phaedrus!

SNOOPY



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