SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : DAYTRADING Fundamentals
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Brandon who wrote (9444)7/6/2000 11:53:03 PM
From: Tai Jin  Read Replies (1) of 18137
 
Swing and position trading has its risks, but it can be very profitable and is more scalable than scalping. But it is very important to know the stock that you are taking a position in. As a Zen master would say, become one with the stock. That is, know all there is to know about it, how it trades, what the market makers and institutions are doing, what drives it, etc.

I had been trading and watching MERX for about a month a few months back and noticed a clear sign of accumulation by the big boys. I had even taken some short term trading losses in the stock before I realized that it was very strong and I had no reason to panic whenever it went down. So I started to accumulate the stock myself. The chart looked very bullish, and on June 8 it broke through resistance in a big way due to an earnings preannouncement. The announcement came as a very pleasant surprise to me as I was content with waiting for earnings later in the month.

I made significantly more on it than I would have had I been trying to scalp any other stock. I also had a very large position in the stock (about 50% of my equity), but I was very confident in the chart and what was going on so I was comfortable with my large position. I suppose something like what happened to ENTU could have happened to MERX, but the probability was almost nil while the probability of big gains was very high.

This game is all about finding the high probability (of success) trades and avoiding the low probability ones. But to do so you have to know what's going on. Don't take a position on an impulse! Take the time to study the trading action and all there is to know about the stock. Become one with the stock. It can be richly rewarding.

...tai
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News