hi Steve, just a thought.....
it doesn't matter that one stock makes up half the loss. when you look back at a chart, you don't know what happens on each individual day, you only have the numbers to look at. being down 90 on the dow is being down 90, doesn't matter who or how. it becomes part of the data, part of the big picture. just as Chris was talking about a chart before earnings are released -> you can sometimes tell if the earnings will be good or bad, as if there was a leak. same thing. if you trade based on the chart, it doesn't matter if the news leaked out or not. data is data, it doesn't matter WHY it goes up or down, just that it does. I haved learned that the more I know about a company, the less I know about the stock price. I trade based on the price and volume data, it has kept my emotions in check. when you make a trade based on some background knowledge, and the trade goes against you, it is very easy to make excuses for why you stay in the trade. and the trade goes further against you.
just a t/a trader's thought......
Debra |
