Timing the Trade the Wyckoff Way Message Board

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Strategies & Market Trends : Timing the Trade the Wyckoff Way

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To: snoot who wrote (137)	6/23/2004 1:52:45 PM
From: coferspeculator	of 14340

Tim I read your response over on YHOO. Ideally, it would have been great taking a short position at the higher level but you are going to find out in your practice period that you won't always get the perfect entry. What you want to do is guard against bad entries. Your entry point in IGT certainly isn't a bad entry. You had a target price and you determined what it was before you entered the trade. You want 3-1 and you set your stop assuring that you would get at least 3-1 and the level of the stop was in an area that you felt comfortable with. After that its watch and wait for any actions that would confirm or deny your judgement. The move back up to the ice area is expected. They normally just don't keep on falling. Your practice trading will confirm this and give you the confidence to sit and wait. If there is strong evidence that demand is returning and will overcome supply then managing the trade to have some profits or break even is good management. If your target price was within a half a buck or so of levels that a stock reaches in a matter of a day or two then it's not a bad idea to take some profits on part of your position. Heck, I'll take 8% in a day or two anytime I can get it. Otherwise just wait and see how the action will play out. There are several ways you can move your stop down so I'd suggest tracking them to see which ones make the most sense to you. If you diligently stick to your practice trading you will be amazed at the dividends it will pay. I'm not in the camp that practice or paper trading isn't necessary. I'm paper trading an idea that someone shared with me early this year. It's very unusual from my perspective since it's a long trading methodology giving no importance to the trend and position of the market. It's done extremely well with the exception of the late May period when profits for the period were trimmed by over 15%. While my friend has assured me that similar situations have only occurred five times in the past four years, I'll be paper trading this process for at least another six to twelve months before I'd even think of risking any money on it. The beauty of paper trading is you can't lose any money and you might just come across some ideas that could be extremely profitable.

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