Timing the Trade the Wyckoff Way Message Board

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Strategies & Market Trends : Timing the Trade the Wyckoff Way

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To: puppyb who wrote (13891)

12/18/2015 6:48:26 PM

From: Joe Highlander

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Yes, that is correct; all of my regrets resulted from buying back.

10 or even 20% trailing stop never ever works for what we are trying to achieve.

You probably remember what PT has shared. Here is in review:

From PT

One hard learned lesson is to buy the newest names as the market moves higher after an important reaction. After every important reaction, every new cycle has new leaders and they provide the biggest gains.

Never be part of quick money; limit buying ideas.

The new ideas have the bigger upside. I can't see putting money to work unless there is an opportunity to double. Few of the stocks that have already put up a big gain will do so again so favor buying the newer listed choices.

Decide whether or not to buy a new idea when first mentioned. The buying decisions are better if doing so. If you like an idea there's a very good chance you'll be buying near listed price.

Stick to the strategy. The strategy is very harder to implement. The patience required implementing it correctly isn't easy.

Loss in some stocks is just part of trading.

Don’t count up the wins and losses, believing if more winners than losers I'd do well. The market makes doing so impossible.

Look at the LP as a pivot point. If an initial purchase fails then the next purchase if still want to own the stock is made near the LP again. The only time buy at a lower price is when the evidence of buying support really jumps out. A daily bullish price bar on huge volume would get attention and if confirmed by a weekly bullish bar on big volume even more of attention.

When repurchasing at lower levels than sold look for same type of bullish chart before repurchasing.

When having six stocks, with so many choices there is a good chance of missing all the better performers. And assuming you have one, you have to deal with the possibility of being shaken out. You have to be smart enough to figure out which big winner isn't one of the many others that fail.

There are periods when there are no new choices for months. Many of choices experience trading ranges for several months. It requires patience to sit through both.

These slow periods don't mean anything but the inactivity is hard to deal with. Have to deal with a mindset that is looking for action; looking for the next big thing; dreaming up reasons to sell; etc.

View your positions from a portfolio perspective; then the emotional impact during periods of high volatility in one of the positions isn't nearly as worrisome.
I didn't have any success by trading in and out of stocks. It is the big gainers that pay off during every cycle that produces the profits.

Here's how to look at the selling.

The biggest winners produce the portfolio gains.

If the stock doesn't move up 20% I'm selling for a gain of 10% or a loss of 10%.

The fly in the ointment occurs if I sell some; and shares continue to move up; but since I'm still holding some shares I still participate in the gains.

I don't know what the future holds for a stock so why take actions based on thinking I do.

Follow the rules without exception. That is the game changer.

The hardest part is holding onto shares when stocks are in trading range or pulling back. Attain proper mind set for holding the shares.

The definition of "opportunity" when looking to purchase is- the stock is trading near listed price and the market is moving forward. Don’t buy a stock which didn't show signs of accumulation prior to considering a purchase.

When many stocks climax and most recent purchases rally but fail, the market is telling that the rally is over.

The subconscious need to be doing something, in the hope of getting ahead, and believing have to know a lot about the markets, takes time to overcome

Making money from the markets basically requires three things.

1) Use New Growth Ideas. Control the desire to always look for the next big thing- this causes problems.

2) Buy near buy point.

3) Buy when their market is oversold. Initially this is hard to do since the market looks weak at the time and the commentary supports that weakness.

Since I'm trying to be in the 30% that make triple digit type moves I give one that has gained 20% to 30% more room. I'll use the 5% profit stop most of the time but move it to 10% if the choice pulls back and then makes a second or third run up but can't get above 30%.

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