The CMT designation helped me get a job at one of India’s largest financial services firm as a Technical Research Head and gave me the qualification that media houses recognized, affording me the opportunity to appear on prime time business TV.
Gautam Shah, CMT, CFTe, MSTA, Founder & Chief Strategist at Goldilocks Premium Research. I’m a technical analyst.
CMT: Could you describe your use of technical analysis within your role?
GS: My venture provides technical research-based advisory to subscribers, so I am constantly monitoring and analyzing the price behavior of all asset classes. My team and I are always on the lookout for bigger trends that we can capture in our strategy.
CMT: What advantage does your approach have over your competitors?
GS: The fact that we do not overly favor any single technical tool or study makes us different from our competitors. We follow a holistic approach and wait patiently for multiple technical triggers to join hands before giving out a recommendation. This has helped us stay on the right side of things. The markets are dynamic; they continuously evolve, so using all available technical tools together is important.
CMT: How does this approach give your strategy an edge?
GS: Our approach is top-down. We start researching on the mother index, form an opinion and then move on to the stronger sectors, eventually looking directly at the stocks in those sectors. A lot of our work revolves around Dow Theory, Relative Strength, RSI, Patterns, Moving Averages and Candlesticks. We believe that for a mega-trend to play out, most of these indicators would come together to signal a large move ahead. By refining our approach with multiple parameters, our conviction level is high, and we can present our perspective boldly to our subscribers.
This approach helps us in weeding out the whipsaws which have become more and more rampant in today’s volatile market environment. We believe this comprehensive multi-step model gives us the edge to understand markets, however illogical they might seem. A great example is the recent market behavior in the US and the world over. One of the fastest bear markets in history was recorded. Using the abovementioned approach, we were able to call the directional move and stayed with it until evidence for a reversal emerged. We would urge new practitioners of technical analysis to go back in history and study the price action based on this same toolset.
CMT: What was your first exposure to technical analysis/charts?
GS: My first exposure to technical analysis was in the year 2000, when I was fresh out of college. I have always been fascinated with charts, ever since seeing them on business TV. My father took me to a popular institute in India to learn “technical analysis.” To my surprise, I was able to grasp the concepts fast, which gave me the confidence to make a career out of it. My job was my hobby, which helped me get better and better without bothering about the monetary side of things.
CMT: How did you first become involved with the CMT Association? Is there an event you especially look forward to?
GS: I was introduced to the CMT program by my mentor, Mr.Vivek Mahajan. Also, attending a couple of events in London way back in 2004 and meeting some CMTs gave me the inclination to take up the program. As a knowledge seeker, the extensive material across the three levels helped me stay engaged in the program and I am happy about it.
I look forward to anything that comes out of the CMT Association throughout the year, because it all helps me sharpen my skillset. I’ve learned a lot from the chapter events and webinars. I plan to attend and hopefully speak at one of the symposiums in the coming years.
CMT: How has earning the CMT designation impacted you professionally?
GS: The experience has been wonderful. In the earlier years it helped me get a job at one of India’s largest financial services firm as a Technical Research Head. It gave me the qualification that media houses recognized and hence an opportunity to appear on primetime business TV. Very recently it gave confidence to my subscribers that they were with a qualified, trustworthy professional. The CMT designation has been worthy on multiple counts.
A lot of what I am today is because of the CMT designation. Qualification, and using the marks of a recognized global organization, is extremely important in today’s world. The CMT program is the gold standard in its field, without a doubt. People associated with me trust my work a lot more because I have CMT next to my name.
CMT: Do you use the CMT designation in conjunction with other designations? How does your technical expertise complement your other designations?
GS: Along with the CMT designation, I also hold my CFTe from the International Federation of Technical Analysts and MSTA (with distinction) from the Society Of Technical Analysts, London. This combination of credentials has helped me connect with technicians from around the world at events, webinars and chapter meetings.
CMT: What is the greatest lasting advice that you have received in your career to date?
GS: Price Discounts Everything!