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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

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To: Arthur Tang who wrote (712)7/30/2000 10:24:25 AM
From: Arthur Tang  Read Replies (1) of 769
 
How do you treat the single day stories by Greenspan or other indices?

Do ignore it, if you are a long term investor. Watch the fundamentals, then look at the intraday technical analysis if you do daytrading. The market will go up and go down with the story for the day. The market today is extremely dynamic. Most people are fully invested, which means there are no surplus cash anywhere. If there are cash flow then the market will go up, then pull back. If there are shorts abundant, such as this market has sustained itself for nine years, pull back will be severe from time to time. Go with the flow.

The professionals who trade without paying commissions, start monday 10am to go with the flow, to scalp the specialists and the market makers. They make a profit and must settle before Friday noon. This profit supplements the lack of commissions earned and have a comfortable living standard.

The go with the flow, maybe called momentum trading, but it is generally two cycles each week. Observe it carefully and you may learn some thing. First look at indexes, then look at individual stock that you are interested. When you can couple the two, you learned how to go with the flow.
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