Does Technical Analysis work in Small Stock Exchange?
Some of my friends and family members is trading in JSX (indonesia stock exchange), KLSE and Shanghai stock exchange.
The most prominent and often question that is raised is that, since the market capitalisation is small and there are a lot of amateurs, the ‘market movers’ is often a big fund or the so called ‘Boss’. The title is often referred to someone/ an institution that has access to insider information, trying to manipulate the ’small fish’ psychology and drive them into taking a huge lost.
Normally in these markets, the market regulator is weak and HELPLESS
the ‘boss’ is said is so powerful that it can ‘create’ and close the market and produce such a graph so tricky for any TA analyst. Dont ge me wrong…. I have seen such a graph that 90% of my indicator strongly suggesting a buy and without any news or anything, it just simply flunk 10% the next day!
So the question is,……
WHAT IS THE POINT OF TA IF THE GRAPH CAN BE MANIPULATED?
here is a quote I found in trendtrader.co.cc
Being wrong is acceptable. But staying wrong is totally unacceptable. Being wrong isn’t a choice, but staying wrong is. To play any game successfully, you have to have some skill, an edge, but beyond that it is money management. Good traders manage the downside; they don’t worry the upside. - MARK MINNERVINI
Should answer one question at a time =)
on October 2nd 2008 in TA