SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ken Wolff who wrote (178)1/12/1998 1:25:00 AM
From: Stoctrader  Read Replies (1) of 2120
 
Ken,

Although I agree with your basic analysis of determining the bottom, I don't really feel like that strategy needs to be necessarily associated with a "dumper" on mediocre bad news. Stocks like DELL, INTC, COMS and other active issues have bottoms that can be picked every single day without having to take on the unnecessary risk of playing a stock on bad news.

I think the key on picking any bottom is not just being able to identify the change in direction, but really sticking to a dedicated stop loss. Because the fact is that it's very easy to be wrong or get faked out. For example, stock ABCD tanks from 12 to 9 1/4 steadily and bottoms out at 9 1/4 X 3/8. The bid upticks to 5/16 and the buyers start to come in. No sooner that you get in at 3/8 the buyers thin out and the selling resumes. The stock goes on to tank to 7 5/8. So like you and many others have said, the best decision any trader can make is to admit you are wrong, kiss the trade goodbye with a small fractional loss and do it quick. At that point, you are then in a position to try a catch the bottom again at a cheaper price.

Thanks for the thread.

Baron Robertson
Editor and Publisher
Elite Trader
elitetrader.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News