BUY-AND-HOLD?--mrtq13 (31-10-2008)

I love to look at the bigger picture. And If I look at the bigger picture of DSE,I see DSE is in downtrend in long trend. The index is trading below 200 MA. Index is heavily MA sensitive.The big uptrend that started since 2006 is now gone. This may be for temporary. But this has an impact on our trading. Index is in downtrend. This means,we can't expect "Buy/Hold" strategy to workable in this downward index. But we can do better buisness by swinging. Because Index doesn't go straight down. It will pause and go up for a while like we have witnessed from 19th Aug to 6th Oct. This is short term uptrend in long term downtrend. This is a good news for FA lovers. As they can find many undervalued stocks in coming years in DSE,if this long term range of downtrend continues............

But if DSE has to break the downtrend that it started in the long term range,then it has to go above 3200 range with very high volume. Coming years will tell us what is gonna happen...............

By the way,by long term,TA means more than one year's range.................And if you look at the index move below,you may clearly see that trend has reversed in long term range. But we can trade in short term range happily every now and then. But the so called "buy/hold" strategy-well,gone are the days when our Grandfathers used to marry four women............Time has changed,so should we......

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