Q&A  |  DEC 2001

Q&A by Don Bright

Q&A by Don Bright ON TECHNICAL ANALYSIS I happened upon the last part of your radio show while I was in Las Vegas recently, and heard you mention STOCKS & COMMODITIES. I picked up a copy and was pleasantly surprised to find that their focus has shifted somewhat from technical analysis. Although I find it interesting, technical analysis seems too complicated at times. Do you trade primarily with technical analysis? — Ray B. Westwood, CA Since I pass many of my e-mails along to S&C, I want to thank you for reading what is probably the best book in the industry! Now to your question. I personally use what I call a “market-aware” method of trading. Simply put, I combine tape reading, technicals, and quantitative risk/reward analysis to determine entry and exit points. When trading for a living, you must be able to focus on the crucial data while discarding the fluff (company announcements, upgrades, and so forth). I like to say “Trading is as simple as you will let it be, or as difficult as you want to make it” — and then jump aboard with what is working, and bail out when conditions change.

by Don Bright