DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: OZ who wrote (4281)	9/20/1999 11:28:00 PM
From: Dan Duchardt	Read Replies (2) of 18137

OZ, . . . he has to beware that he does not fall into the trap of letting the faster bars shake him loose. This is in my opinion the biggest problem for the new daytrader. Or rather, the biggest catalyst to emotional reversals. Three down candles mean nothing in the context of a daily bar swing type setup. The minute you rollover the stock will do what it was "supposed to". Almost feels like a conspiracy when it happens. I believe this is my own greatest obstacle to successful trading. I have a real knack for letting positions go at the precise bottom of a dip. On Friday I gave away CSCO at about 2:40 at (you guessed it if you looked at the chart) 72_1/16. CSCO went on to close at 73_1/2. At the moment I'm using something less than the most effective trading platform, so that was a factor in my decision, but even with a direct access platform there is still the well honored concept of a stop. How do you balance the idea that three down candles mean nothing with the fact that 3 5-minute bars can at times be a 5-10% drop and the need to protect profits and avoid losses?? Dan

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