Ask HN: How to use technical analysis for long term investing? • Hacker News Board

Re: Ask HN: How to use technical analysis for long term investing?

#21

Post by nmhancoc » Fri, Dec 31, 2021, 2:36 AM UTC

I haven’t had (or seen anyone else have) success with TA, but if you’re looking to improve your entry into existing positions why not try selling cash covered puts.

The premium for short-dated puts gives you some bounds about which the options market thinks the underlying will move, and I’ve been able to improve my entries in effected issues by 5-8% in terms of price (before fees for options).

It’s effectively a limit order that you can’t cancel, with potential upside if the puts expire worthless.

Re: Ask HN: How to use technical analysis for long term investing?

#22

Post by kpr21 » Fri, Dec 31, 2021, 7:43 AM UTC

nmhancoc wrote: post #21

I haven’t had (or seen anyone else have) success with TA, but if you’re looking to improve your entry into existing positions why not try selling cash covered puts. The premium for short-dated puts gives you some bounds about which the options market thinks the underlying will move, and I’ve been able to improve my entries in effected issues by 5-8% in terms of price (before fees for options). It’s effectively a limi…

Thanks for input. I want to keep things simple. So not looking at puts etc

Re: Ask HN: How to use technical analysis for long term investing?

#23

Post by kpr21 » Fri, Dec 31, 2021, 7:50 AM UTC

asr21 wrote: post #20

Indian here, so I won't know if this works on NASDAQ or US stock market in general. Also, I have traded only a short time in bear market. Most of my trading is in Bull Market. So take my input with a truck load of salt . The thing worked for me, is the simple concept of Support and Resistance and Dow theory ( Higher high, Higher low all that shit.) . So let's say there is a certain point or a range after which , it u…

Thanks for the good input. Glad it worked for you. I had read a little bit on support/resistance, higher high/low theory etc. But I find them very boring. ( In fact everything around technical analysis). As I said, I am not looking at trading. The idea was to use technicals for a better entry price.