Lots of good points, mish
On the R/R point. I wasn't implying that anyone should go hugely long here; my point was that (all things being equal) until there's a clear trend change then the long play is more favored.
In general, I don't favor going short (except for wiggle intraday trades or 2-3 day holds on particular issues) until we have clearer evidence of a trend change. If one feels compelled to do so then he should choose an issue that has clearly already turned down, in whatever trading timeframe he chooses.
For someone that is contemplating getting in now, I agree that "one has to be "100% on their toes" and, actually, I think people should be that way all the time, unless maybe if you're 300% ahead on a slow moving issue, or something like that. But for one that is thinking about getting in now, rather than looking at the market in general and the well-known names, IMO he'd be best advised to seek out lesser smaller and mid cap niche market players with strong trends. Or if one does want to stay with big names he would have to look for news that might be driving particular names higher.
And, of course, you're correct in saying that anyone should stick to what works best to them. Anything in my prior post that one feels could be interpreted otherwise was more directed at those that are not looking at both sides of the market and taking advantage of IT trend changes, as an implied addendum to Allan's well-heeded comment "being stubborn can get you killed." |
