Hi E. Davies,
You'll undoubtedly come across many people who will say "Trading is for real suckers, only the long term investors win in the end..." This is simply NOT TRUE. PERIOD.
As any good (and honest) trader will tell you, it takes AT LEAST 3-4 years of studying charts, resistance, support, gaps, etc. on thousands of stocks to get the hang of buying support, letting your profits run, and keeping your losses low. Sure, there is the occasional lucky trader who will get a few nice pops here and there, but will eventually give those gains back along with their initial investment without the experience mentioned.
It is very tough (psychologically) to get kicked down, then rise right back and get in a stock for the next set-up. Many are beaten by this.
While I am absolutely a proponent of "long term" holdings, short term trading is a place where the big $$ can be made...in ANY type of market. Look at what the energies did when the 'Nets got whacked recently...good $$ was made if you knew what to look for.
ATHM is a great example of a "short term" trade. A classic shakeout occurred the last 2 days when it dropped below support of $36.00. Today was a nice reversal with solid volume.
Well, just thought I'd give my $.02 worth...
Best of luck SCOTT |
