To those confused by all the picks and advice - I recommend the "KISS" philosophy. "Keep It Simple Stupid" is a good way to go. Keep it as simple as you need to. Rather than being torn a hundred directions with possible plays, you can do some things to simplify and keep your sanity.
1) Avoid the doldrums. Today (and most days) the NQ's (in the doldrums) are in such a tight range that it really doesn't make much sense to do anything. Most of us can't make money unless there is a fairly major advance or decline of say, 40 points or so in the NAZ. The NQ's (even on 1-minute candlesticks thatt scalpers may use) may only rally up a few bars before going right back down). Momentum may last for a couple minutes than subside. You have to be incredibly nimble in the doldrums. Also, unless you are pretty sure, avoid a long trade (especially if it is anything but a scalp) when the TICK is negative and TRIN above 1.00 or even .90. Some will break the rule especially if the Market is rallying from a major low point and the TRIN is improving rapidly, but it's a good overall rule to follow and takes the emotion out.
2) Find a few stocks with good fundamentals and recent upgrades that are down with the market. Often they are good trades on any pullbacks of significance if the Market rallies. For instance you could have done well today again just playing RBAK. Bought at 32-1/2 and sold at $35-1/2. One solid trade a day can make your day. Why get so involved with so many possibles, especially if you are not great at T/A? Leave that to the pro's who are willing to devote 14 hours a day to increasing their knowledge.
Find other stocks that are relatively strong today or were recently. Make a list with short and long trigger points. Get to know these stocks. You can do the same procedure on the short side with stocks that are overvalued and in sectors exhibiting weakness. In my opinion, unless you are willing to devote many hours a day, it is best to watch the key stocks and indicators in key sectors and get to know them, rather than trade in stocks or sectors you don't know.
3) You can really lose your focus fast and make emotional decisions. I recommend keeping it as simple as you need to, for YOU. Trading rooms can be overwhelming with all the picks and advice. You feel like you are missing out and can easily get frustrated. They are great for gleaning information but you can't expect to trade on much of the advice, especially in range-bound markets.
4) Don't forget to watch all the important indicators TICK, TRIN, SOX, BTK, VIX, NQ's, S/P, etc
The biggest rule I think is to keep it simple, especially if you can't devote much time to studying the markets and rapidly increasing your knowledge of T/A and overall market sense. And don't feel like you ever have to trade unless the time and conditions are most favorable. When it is, I follow my set procedure and don't look back.
That's my opinion only. Use your own best judgement. |
