KF,
<In some cases, current conditions seem to call for longer holding periods, less dependence on unimpeded directional moves, more conservative price targets, and possibly for tighter stops>
That's exactly what I'm working toward in my personal trading. Well that, AND a lot of 15-minute holds. What you're describing is the natural next phase after a burst bubble, ie a long healing, basing period on lower volatility.
One note though: I'd like to see more stats on average daily range. I still suspect price is stuck in glue more in the decimal environment. One problem in reaching any conclusion, subjective or other wise, is the broad shift in stock values the last year. For example, I can say JDSU is less volatile now than in early 2000. But I doubt my brain can translate movement of a $130 stock into comparative movement of a $20 stock.
Guess one last point is in order. This is a "oh baby!". I'm making more money on day shorting now than any time in the last 7 years. Absolutely fearless trades: trend, countertrend, any old crap, who cares? A lot of stuff that I would not have touched a year ago. Either I'm reading the squeeze much better, or it just ain't there like it used to be.
Alan |
