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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From: jan8

1/25/2022 8:53:37 AM

of 14340

And one from PT 1950

After a number of disappointing years I took a long look at what I was doing wrong. I was overtrading.

To reduce the number of trades, I needed to focus on a small list of candidates; buy when the market was good; and buy at or near a predetermined price.

Focus on newer leading types with strong fundamentals and which are showing signs of accumulation.
Begin buying when the market is moving forward
Buy near the listed price

If I followed this plan then holding onto a position wasn't as difficult as it had been since the number of new purchases were far fewer than I had made in previous years. Their selling rules also helped since they often force me to hold onto at least some of the shares.

I developed a mindset that would only act when all the steps were met.

A couple of other things I've learned about myself that have helped me. One, I can be influenced by the news comments so I try not to listen. Two, for a long time I spent way too much time trying to figure out why I missed a big winner. Not anymore. My mindset is I can't lose if I don't have a position. Since I won't buy until all the steps are met, there's no good reason to give any thought to a position I didn't buy regardless of how it performed.

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.

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. 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 hard to implement. The patience required implementing it correctly isn't easy.

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.

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

Don't let the cap size keep from buying a stock.

The best market rallies have occurred after reactions ranging from a few months up to six months.

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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