Technical Analysis For Regular and Aggressive Investors

Nov. 23, 2003
Author: Jim Sinclair

Please review the following pointers on technical analysis which you will find of tremendous value in the months and years ahead.
 
1/ Keep it simple. When things become too complex, you usually destroy your performance for a significant period of time.
2/ The acknowledgement of Trend Lines and how to construct them will revolutionize your investment performance.
3/ Another fifteen minutes studying Up Trending and Down Trending Channels will help you enormously.
4/ Assuming you wish to continue, studying the consolidation of formations for thirty minutes is also essential..
5/ Finally, an hour spent on internal indicators and I honestly believe you will be better at analysis than 95% of the buffoons that write about the gold market.
6/ Use the TA books I have suggested as reference texts making sure you understand every word. Failure to study TA will set your present performance into cement. Are you so good that no improvement is required?
7/ If you subscribe to a trading service such as Harry Schultz’s GCRU, you still have to study TA or you cannot understand and apply any of his directions. Harry teaches as he preaches.

One price advisors are a disruption to markets and investors and in my opinion are counter productive in the Gold Community even if they mean well.

This weekend I have selected certain non GCRU items (out of respect for Harry) and reviewed them only using 1 through 4 above.

Fax me with your requested situations to use as teaching tools and I will pick a few randomly to demonstrate TA.

Note:

I have used TNX - a situation I am involved with - as a TA lesson so that even those shareholders that have confidence in me are protected as investors. 

Any stockholder that sells 1/3 of any situation into strength along the over bought side of Up Trending channels with the intention of doing the opposite when TA correct - TNX included - does not hurt the situation but in fact helps it.

Any management personality that fears his own stockholders as sellers is not secure with his company’s business plan. Fairness demands that I teach you how to protect yourself in items of my own interest.

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