[npg]

Guys,

I got severly burned trading on lagging indicators. All MACD and SlowStoch tell u is what the mood is, but it is no indication whatsoever of its future moves.

Like somebody else pointed out, price action is a far better approach (although still risky).

The way I see it:

Once you get a company trading below your mos it is only a matter of time until the big shots start seeing it on their radar. Companies selling at such low levels is quite rare. Thus, there is a safety factor against further pain when u get in once you see the momentum picking up.

However, even this can go wrong (look at the CSH posts) and a share can plummet overnight by 25% without any indication.

Thus, you better have a very good idea of how good the jokeys are and whether that horse is worth the bet u wager.

Phil does not teach a magic method nobody knows. Don't ever be fooled believing that. He never meant that at all. It's about basics and fundamentals and he rightfully stresses that you have to be very confident about them in order to sit through any further jitters.

Using the 3 tools gives you a further comfort layer, but that's about it. You gotta be confident about the company on a long term timespan otherwise you get burned.