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29 May 2015 (AFR) – Easiest way to cash in on China’s stock rally is to do nothing

[COMMENT: I sincerely hope that no one takes this sort of information seriously. There are many professionals in the markets who would strongly disagree with the gist of “advice” in this news story. Even so, it is worth reading (to understand how some investors actually think. The other thign to note in this article is that any comment that attempts to disprove Technical Analysis, is not borne out by all of the quality research into the subject. There are so many flaws with the arguments proposed here, and it is not possible to take issue with them because there are no specifics – just rash generalisations.]

(29 may 2015, AFR, p30, by Ye Xie)

‘The best way to make money in China’s booming stock market has been, well, to do nothing. Simply buying and holding would have captured the 142 per cent return in the Shanghai Composite Index over the past year, the best performance among 23 trading models based on technical analysis such as the Bollinger band indicator and moving averages. The mean return of these tools is only 14 per cent, according to back-testing data compiled by Bloomberg.’

Read more at AFR.com (might need AFR login access)

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

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