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Strategies & Market Trends : Technical Analysis - Beginners

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To: peter n matzke who wrote (7431)1/2/1998 11:01:00 AM
From: David R. Evans  Read Replies (1) of 12039
 
Hello Peter,

Obviously it is much harder to find an up trending stock in a down trending Market so many people will just jump in and look for DOWN trending stock. That's the way you stay with the Market. Another way is to stay on the sidelines OR go shorter term with your trades.

I tend to go shorter term with my trades as opposed to going short. If you read my write-up on selling you will see that I group it into three steps. In a down Market I would not go beyond the first step. I would stay short term.

If the system you are using is not finding any winners I would STOP using it. There are systems out there that will only work in certain Markets and that's GREAT as long as you know what those Markets are.

You must also look at the type of stocks you have in your database and what type of stocks are moving. If retailers are going down the tubes and your database is filled with retaining stocks, guess what!!! The same holds true for big Caps and small Caps. If the big guys are moving and the little guys are getting killed I would suggest you stay far away from the small guys. Do not fight the Market or you will get killed.

Remember, we are only here to intrepid the Market, not tell it where to go...

Dave Evans
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