>>rapped my fingers with this post <<
I wouldn't say he rapped your fingers, just tried to calm anxious nerves with sound advise. Find a system that works and stick with it is always the way.
As I have been discussing with Dennis, sticking with systems based on each persons tolerances are the key to being successful. He tends to be more bullish as he can move quicker than I and he uses mostly stock for his trades where as I use 99.9% options. My ducks ALL have to line up before I jump in and I can not grab a play if 5 out of 10 indicators line up. I have tried it and payed dearly for the reminder many times. My site inthe future will show some of my automated signals that may seem to work at times and like my Index charts show over the last couple weeks, not work at times. However, I also have numerous alerts that pop up and show me other indications, I cross check each play with it's respective index and numerous other things before entering a trade. I get early buy/sell signals that won't show on the charts since some parameters are met while others aren't so that if I feel that something is wrong and I get an early warning signal, I can exit before the hard signal arrives later. As I keep stating, earnings warning season is coming which makes me lean to the bearish side. While many here will make money during the rally up that I expect to last 1 1/2 to 2 weeks, I will make money on the way back down. I have historically made more going short than long while others I know and talk to everyday lose every time they go short yet make good money going long. It all depends on your picks, your timing and strategies. I like buying cheap puts during rallies as people panic then sell as they rush to get back in them when things reverse. Others do it the same on the long side with calls and I do also at times. I just like the fact that stocks tend to fall faster than they climb as more people are on the long side than there are shorters.
I have numerous buy signals tonight, very few sell signals but I also have a few false break out signals. There will be money to be made on both sides of this run.
Find your system, stick with it, and if you miss a trade, oh well there are always others. I think his post was a good reminder that applies to all systems not just P&F.
Wow, I didn't mean to get long winded. Just trying to clarify my standings a bit. I tend to play devil's advocate to prompt discussion and examination of all sides. I also tend to hedge my views as I don't feel anyone can say the market is going up this much no matter what since there are so many variables. Even today when 98% of my active trader charts are saying buy, do so for differing reasons. Many of these are nothing more than technical bounces with bottoming stochastics, MACDs and prices hitting support lines. There are many excellent longs here to play but the water has been made muddy by the technical bounces on stocks that will fall again soon so as usual it is a pickers market.
Good Luck,
Lee |
