rrrbbbggguo
29 posts
msg #37909
- Ignore rrrbbbggguo |
9/10/2005 8:45:42 PM
Glyder: Here is the tricks of me, hopely useful for you!
For the success of technical analysis, that is the to predict the trend of market, there are several indicators are important: 1, RSI is very critical, usually it will bottom much faster then the price, so when you found RSI get to bottom, you need pay more attension to the behavior of the stock to find a perfect entry. 2. +volume is also very critical, when you find that there are unusual large volumes apperearing for several days, the price is up a bit but not too much, it is the good sign! 3. It is also useful to check parabolic SAR, whether they are on up trend; 4. furthermore, check the history curve of the stock in the past 1-5 year to see what kind point is good for entry and exit, you have to believe the history will happen again and again, especially for the stock. 5. before you buy or short the stock, you have to get clear idea when and where to set your stop to protect your profit and principle. Finally and most important, is always check the trend of big market (SPY, QQQQ, etc) to make ure it is up or down, if it is up, of course you can buy stock, if it is down, it is safe to short the stock. In addition, I must point out that the penny stock is kind crazy, when market is Up, most of the penny stock will down
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glider
59 posts
msg #37913
- Ignore glider |
9/12/2005 1:16:44 AM
rrrbbbggguo,
Thanks for the tips.
But I would add, in addition to checking the general market trend, it's also good to check the industry & sector trend. Market maybe down but the industry/sector of the stock may be up which would influence how you play it.
Glider
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nikoschopen
2,824 posts
msg #37921
- Ignore nikoschopen |
9/12/2005 9:24:58 PM
In reply to
"You need to realize that all trading systems/stock screens/filters have one thing in common. THEY ALL WORK - EXCEPT WHEN THEY DONT! That's why dart throwers will occasionally win stock picking contests."
Man I'm glad somebody got that right. Only one conclusion I have drawn from many years of trading is that one needs to be an opportunist to make money in the market, PERIOD. If your (or somebody else's) filter worked in the past but it no longer works, guess what? It's not the same market. In another word, the conditions have changed. The filter might have been written for an uptrending market, but you're probably amidst a market that is ripping at its seams and your seeing more blood than you can stomach.
In addition, you are psychologically different from the filter writer, inasmuch as he might risk entering a trade at certain times or conditions while you might not. My point is that given a 100 traders using the same filter, every one of them will reactly differently to a given signal. My 2-cents advice is to be flexible. Stubborness is your first-class ticket to the poorhouse. And ALWAYS ALWAYS weigh the risk from the potentioal reward before plunging in, and exit at a predetermined stop should the trade go against you. The reward:risk ratio should be at least 2 to 1 in order to merit my attention, otherwise I consider it too risky.
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rrrbbbggguo
29 posts
msg #37923
- Ignore rrrbbbggguo |
9/12/2005 10:44:35 PM
Follow market, not fight with market; figure out (by technical analysis--RSI, vol, momemtum) why some stocks profit quite well while others loss lots eventhough they are from same filter; Not rush to own the stock but use buy stop limit or short stop limit to wait the perfect entry point (because most of the time the set up is not a good point for entry when you read the screen result), the stop limit is a ideal way to "fishing")
Why somepeople are so successful, are they more lucky? No, they figured out how to choose stock, know when and where to enter and exit. anyway stock is really amazing, just like play a game with self.
There is a wonderful site to learn technical analysis (RSI, MACD, etc)and it's free:
http://www.streetauthority.com/technicalanalysis.asp
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yepher
359 posts
msg #38065
- Ignore yepher |
9/19/2005 10:27:51 AM
shelupinin,
Do you trust your system? Have you tested it extensivly?
If your answer yes to those two items then take a break from trading. Go to the bookstore and get the book "Trading in the Zone"
Here is a shortcut to the book if you need it:
http://yepher.com/~yepher/tradeZone.html
If you do not trust you system I would advise more research. Once you trust your system then read "Trading in the Zone"
Hope that helps
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