Analysis Paralysis

I had an interesting back and forth between a reader about WMT. After I made a comment about WMT 4% plus breakout couple of days ago, this particular reader and I exchanged close to 30 emails back and forth while he tried to make up his mind about whether to enter it on not.

He had questions about why buy on 4% breakout. Will it work. But and but and but.... Now this is common thing I see many people write to me some 3 days after a stock is highlighted to ask whether they should buy now. They were apparently researching it for 3 days and are now convinced.

This is a clear indicator of lack of methodology and understanding of things. While you must analyze an opportunity, you must do it in reasonable time frame. The entry opportunities in market are ephemeral. That is why one must do all the thinking before you start trading any method.

Related to this is another problem of people trying to perfect their methods for month, but unable to transition to trading. I will have more about it sometime later.

Later: Role change


Nonadamas said...

Your patience is exemplary.

Thank you for excellent site.

Unknown said...

I also want to express my gratitude for your patience and kindness in taking questions

QUIKTDR said...

I just downloaded 21 days weakness plus breakout and received 57 candidates and 48 potential candidates for 65 days weakness plus breakout, what do you sort by in order to get "best" candidates?

Obviously, one can't purchase all of these candidates, how do you eliminate and keep a more workable list?

I asked this same question before but not in the most current comments that is why I repeated it.

Pradeep Bonde said...

I am not sure which method you are talking about. Narrowing to best opportunities is method specific. So if you clarify what method you are following, I can tell you how I do it.

Pradeep Bonde said...

Barbara and JF

QUIKTDR said...


(100 * (C1 - C22) / C22) < 10 AND ( 100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1

Pradeep Bonde said...

But that has to be on some list. Read the total contxt of it. It was on IBD 200 list. If you apply that on IBD 200 today, you get only two candidates:

QUIKTDR said...

I used Telechart 2007 universe

Susan said...

i also want to thank you for you patience Pradeep.

QUIKTDR said...

I am sorry I used TC2007 universe.

How do you input the IBD 200 by hand?