====================== Mr Bua8484; ''WELL, its a bull market you know'' That's what ''old turkey'' said when ever someone would try to get him to sell his longs in a bull market,LOL Actually I like a good bull market/ Up-trend ;;;;; + good bear market/downtrend Frankly,, study SPY on 10year+ charts, 3 year weekly donchian channels..... Its a very extended, old bull market, + late in the year. Sure it[bull market] '' could more extended '';;;;; '' its a bull market , you know'' I agree with AAA on this ''not a raging bull market'' SPY took out a monthly low recently, sell volume looks better than buy volume on longer term charts.QQQ has raged recently, but still very old , EXTENDED UP-trend. Wisdom is profitable to direct; 2001 Traders Almanac[SELL in MAY + go away] + newer editions could help you, realize frankly its a risky, risky bull market, when SPY or any takes out a MONTHLY LOW=look out below. NOT a prediction;; markets don't work that way.Hope this helps, it helped me
Handle123, How do you make sure that these are retracement and will bounce back. Be'cos there is possibility that this might be reversal and going into a down trend
What? Just because something's up on a good earnings call doesn't mean the volume is much higher. And random breakouts tend to fail badly. Just look at CLRO and GSB recently. Psychologically, traders AND investors would feel better selling at random breakouts. They're thinking should be along the lines of: "the stock is up 40%+ in a short amount of time, but no change to the story. therefore, I should take profits while I can because the market price can just as easily fall." then, like clockwork, selling breeds fear and more selling back to a psychological price floor.
Much of my buying is done on breakouts. Sometimes i buy retracements too. The main thing is to be in the trend.
Enjoyed the Jessie Livermore a few posts back about "this being a bull market, you know". I can pick out long periods of time where buying at fib 50% retracement in a trending market would make you a millionaire. The "Turtles" famously made some big money on the breakout strategy until it stopped paying out. So I think certain approaches seem to be in vogue one day, and out the next. Personally I feel more comfortable on buying profit taking pull-backs. Perhaps something along the lines of these 5 S&P stocks that recently caught my eye (purely on technical reasons).
If it retraces beyond your risk limit you sell. You have a usable method if the probability of wins multiplied by avg. win amount is greater than probability of loss times risk amount. This is the essence of Master Trading. You will lose, and that is where the money is made.......... :eek:
For once D) Satan's helper advice had some content that were good. Regarding what to do with your money - if you have worked your psychology/spirtuality thus developed a high respect for yourself, you will discover how buying what he suggests is about looking to destroy yourself down the line, and a demonstration of some self-loathing. So take your grand, and go and enjoy it with your family ( parents, siblings, cousins...) : book the whole lot to a theater show + restaurant + book a "show off car with chauffeur" to transport your whole family during this going out offered by you. Book a photographer if you can to seal the event. Now for the trading : before putting one cent of real money in the market, do yourself the favor of taking 1000 trades of breakout , keep a record of everything, keep a fixed number of shares.
Well, as of my point of view I wouldnt rely on it too much. I have noticed the half hour reversal to be fairly common. So even if you did buy a breakout of the 15minute range, you are running right into potential resistance.