5/4/09: Daily charts not showing me too much , so I will focus on the gap list, then Rel Weak & Rel. Strong stocks to play. Watching CENX , JOYG and MEE for early short plays.
Geez, I really enjoy the discussion with you....My problem with all this is a phrase I read in a book a few years ago and since then I feel somehow "obliged" to follow: "Don't trade your portfolio,your account,trade the market"...... Today,I believe that this phrase still holds,but in a different way.Let me explain. First of all,I believe that the best ever advice one can give t a trader is the classic "cut your losses short and let your profits run".By taking small profits,I was doing for years just the opposite.... So,I "trade the market" by having a technical system with rules,setup bars,etc.I am trading the market by using a technical stop-loss and not a dollar stop.Then,through my risk management process (1-2% risk on each trade) I derive my position size. But then,I have to trade my account as well.Because I can never predict or control the market's movements.So,I have to set profit targets.... Another problem is small accounts...With small accounts you have 2 choices: either you play small and survive over the long run,but with small profits,or you go for bigger profits,risking too much on each trade....Either way,the results are poor. What drives me crazy is the cherry picked examples of most system sellers,when you catch a very big trend on your first trade,doubling your account in one month....That's why I believe Van Tharp is an honest teacher.He shows you the realty of trading as a probability game... PS. I recently had the chance to review a seminar on candlesticks by Steve Nison.Dozens of techniques,carefully picked examples,and in an instance one student asks him if he trades."No,I don't trade because I can't stand the tense....".I threw away the DVD immidiately....Teaching is very useful (and profitable) and it has a great advantage: there is no risk.... I'll continue on money management and stop movement later.....