as short term traders, i see comments like: "Back to the froth market? Bios and Internets leading?"
The answer is pure and simple:
1) As pure technicians, the trader should leave the emotions out of the picture and look at the chart objectively, whether it be a chart of a bank, gold, internet, or biotech.
2) When entering a trade, the trader has STOPS to protect them when he/she is wrong.
By using the chart, the trader can look for good setups where the Reward/Risk ratio is "on his/her side"..
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I'm surprised all these "technical traders" are using logic and open-ended philosophical questions, in their trading. That is breaking the fundamental use of charts as your objective tool.
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My Motto: TRADE THE CHART, NOT YOUR EMOTIONS. Have a Stop in case your wrong. Trading is not hard. It's when people let their emotions get into their analysis, they will run into trouble.
If you think about, the stock market is a DISCOUNTING mechanism. So, by the time "things ARE ROSY, it's the TOP!" Don't you guys remember the top of the bull market? Conversely, when the economic reports were very bad, the market ALREADY DROPPED 50% in naz and 15% in spx!
Don't get me wrong, I'm not a bull or bear. I'm just saying use the chart to tell you what to do, not your emotions. |
