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Strategies & Market Trends : DAYTRADING Fundamentals
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To: Apakhabar who wrote (10983)12/17/2000 12:11:34 PM
From: aldrums  Read Replies (1) of 18137
 
I just mean there is a huge difference between trying to teach people to look clearly at the market action and not let their biases influence their appraisal, and teaching somebody to buy "ordinary" capitulation selling for a bounce. The former will be of lasting value, the latter will, in time, be just another technique that the market absorbs and eventually de-fangs. In other words, the specific trading strategy is MOST useful in the long term insofar as it illustrates the psychological thinking that went into it. IMHO.

Ap,

IMHO I would say fear (i.e. capitulation selling) and greed are the hardest emotions / psychology to hide in the market. The foundations of TA will continue, and there will always be astute traders acquiring shares at lower levels and selling to the public at higher. Threei and Chris do a great job explaining the psychology behind stock movement, and personally I won't trade any setup unless I understand the psychology of the traders that creates it.
In the past few weeks when liquidity was low and the bear market was taking hold, Threei told us to do two papertrades at a time when one of our setups occurred. One papertrade would be as the setup suggested. The other would be AGAINST the setup. I think this a simple but brilliant strategy. It takes into account the "Pattern Failure" concept that Alan speaks about often. I think using this technique when the market is behaving in an unfamiliar way will allow us to adjust and modify our setups so we may continue taking profits. I have a feeling Chris and Threei can adjust to whatever the market brings, and hopefully I will be able to adjust along with them.

Alex
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