KEEP IT SIMPLE TRADING Message Board

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Strategies & Market Trends : KEEP IT SIMPLE TRADING

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To: Michael Watkins who wrote (178)	2/19/2004 2:26:33 PM
From: mistermj	Read Replies (1) of 321

Hi Michael.I appreciate you taking the time to offer your suggestions. We obviously see different things in the daily RKH chart.I see a lot of divergences in indicators that suggest its a short.Much of what I see is under the radar so to speak.I stand by the call.I might be wrong...and it is going against me at the moment ;-)...but I have to call them as I see them. I'm not suggesting they will ALL be right.The very things you are watching for to go short, however,are the same things the masses watch for.We'll never get an entry with your example. You have to understand we are looking to capture very short term moves here. We can make a very nice profit on a quick overnight pullback of 1%, using leverage to get 2% ...and you may still be right that the index goes up from there.You are looking at the big picture...I am looking at a very,very small picture of momentum. By making my "calls" today I think I have made it very clear for people to do their own DD.My main objective is to start showing how I do this. Its hard to explain without an example to pick apart. You may be right about offering stop loss targets to exit. The problem there however is that the individual can best determine where their stop should be IMO. For instance suggesting a stop can also trap someone into a loss that they wouldn't take if they gave it more room. What is your magical formula for stops ? I'm not sure I have one...they can be a very double edged sword IMO. Off the top of my head I would say a 2% stop loss would seem reasonable for these type of trades. I hope I'm not coming across the wrong way. Your post has forced me to explain things in more detail...thats a good thing. I get the feeling you are trying to protect me from getting into too much trouble with my calls here. I might not agree with everything you said but I do appreciate the concern. Any guidance on stop loss exits would be appreciated.

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