bdog -
I sometimes look at chart patterns, if I have two buy signals and only enough money for one buy!
Almost always, though, I trade by indicators alone (less subjective). As I said in my earlier post, I'll buy only if my buy criterion is met, or has very recently been met (within the last 2-3 weeks). After that, I'll sell with a sell signal, or with a protective stop, whichever occurs first.
I try to knock out the 'eye-balling' with my trading as much as possible, and just follow the rules! Let me briefly tell you why...
In 1995, I made 35 round-trip trades. I made 35% that year in my rollover IRA. Early in 1996, I went back and looked at my trade log, and critiqued every 1995 trade according to exact system rules. I found out that I had often bought late, and sold early. If I had gone by exact rules (NO second guessing), I would have boosted my return to about 70%!.
That was one of the best things that's ever happened to me in my trading. Now I set my rules, follow them, and try not to look back over my shoulder.
Loren |
