I might mention a point that I like to make about indicators. They give a entry and exit. Now there might be a window of a day or so around that point. Henry or a trader says here is a entry/exit, it means at that point not a week later. Someone comes along after that point and they want to jump in, But they might not apply any TA logic to a add point and they get caught.
Lets say, a system says buy at 8.50, now stock is at 10 on a week's runup. Someone hears about it, since they have read a few posts, etc. they want to check out TA. They say dahl is positive, DNS is still at 8, etc, etc. They buy at 10.50, high of day. next 2 days it is back down to 9.25, they punch out! The system is still at a 9% profit, they took a 12% loss. the indicator/system gave buy at 8.50 not at 10.50. later stock might go to 14 in next 2 weeks or so.
Now, there are entries on the way up, but you have to have a plan. if you don't you can get hurt, then you will blame it on the system. You might even say if the funnys are good, I will stick it out in a loss. Funnys might not have a dang thing to do with it, at least not while you are in stock. lets say stock instead of going to 14 goes back to 8.00, you are down 24%, system says get out for a 6% loss.
It is a matter of timing. either you do it or you put yourself in the hands of a trusted system/person that agrees with your mindset. But the blame lies with you, always. |
