Casaubon, you have just hit the nail on the head re a problem that I have been having. I have been spending hours upon hours trying to learn patterns described by O'Neill, principally the cup and handle. I scrutinize the IBD Naz and NYSE "stocks in the news" that show charts of selected stocks. I rarely can find a good cup and handle, particularly where the handle drifts down on lower volume, etc.
I had been thinking that if I got proficient in recognizing this kind of pattern, I would have a shot at making good trades (I trade stocks long, nothing else.) I have made about 6 poor trades in a row since September 1, most recently SSTI for a 25% loss in 2 weeks, and this is getting frustrating. (The good thing is, I leave most of my capital long term in "Gorilla and King" stocks, and they have fared pretty well. Nevertheless, I would like to learn how to pick up a little cash by trading short to medium term in stocks.)
So, if the cup and handle breakout is a rarity, what would you describe as a good pattern to look for that occurs with greater frequency? I would very much like to know about something that I could learn by using IBD as a tool- I really like the paper and have become familiar with it.
TIA and regards, Lynn |
