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: Sir Francis Drake who wrote (1925)4/17/1999 1:02:00 PM
From: Tai Jin   of 2120
 
What I have found is that you cannot lose sight of the objective or you will be taking losses for no good reason. What I mean is that if you trade with the trend then don't let small pullbacks shake you out (as long as the pullback does not break the trend). The trend has to be determined by studying the chart and trading action. Prices can and do wiggle by 1 pt or more (especially the more volatile issues) during a trend, so more likely than not you won't enter the trade at the exact local minimum price.

If the stock drops it only means that I entered a bit early and assuming that the prevailing trend is still up then I should average down. I find that in a situation like this if I take the immediate loss I will only be throwing money away. Whereas if I only hold for a little longer (and perhaps averaged down) that I would have a winning trade.

So what I'm saying is that it is important to enter a trade with the correct assumptions based on TA and watching the trend. If you enter a trade with the wrong assumptions then you must get out immediately with a small loss or take a much bigger loss later (I've learned this many times). On the other hand, it's just as important not to be shaken out of a good position if the trend is still with you. It's as simple as that, but I find that it's easily forgotten when you are sweating every down tick and forget that the longer trend is still with you.

...tai
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