Hi DRC,
Good to see that you are considering TAOTB II, it will be a great educational and fun time for all of us. Hope to meet you there.
On your earlier post, I have a few questions. I think that I saw that your only indicator now is DNS for scanning. From this I gather that you are still only interested in strongly trending stocks. No bottom fishing etc..
I scan with DNS, stochrsi, stoch, mov avgs and cci. Once I have the candidates, I look for S&R etc and will continue to look at indicators but not for os or ob but for unique patterns to that security and for divergences as well. Once you have yourself a list of uptrending stocks, the trick is to find which one looks the 'easiest' to jump on. Channels and moving averages are much more important at this time and not the indicators. Never liked bottom fishing, always liked basing and uptrending stocks. It's so much easier for a cruise ship to go in the same direction than to make a u turn.
Do you not use StochRSI(14) anymore? Especially with DNS having been and continuing over 5?
Thats my favorite scan. DNS has had to been at 8 and not gone lower that 5. SRSI14 must be below 40. Lots of great uptrending stocks that are taking a breather can be found.
Do you use the IBD back pages for new database entries? How large is your overall database? Do you use Fibinaci, Gann, or mostly eyeball your S/R?
Since the new year 80 percent of my trades were large cap stocks because the little guys aren't ready yet. They look like the're ready but it's like a guy waiting for his wife to finished getting dressed -vbg-
I will stick to the larger companies until thr Russel 2000 shows us that they can be rewarding. I spend lots of time drawing trendlines and the like. I also draw fib retracements on all my charts.
RE:KISS
I think TA has got to be simple. Stocks go up, stay in ranges or go down. If you buy a stock, you have a 50/50 chance of making a profit. If you have a profit, don't be afraid to take it. If you have a loss, don't be afraid to admit making a mistake. Expand from there. Break it down to the smallest common denominator. Up or down. Join in until things reverse. How? Uptrending stocks break their uptrends.
Ranging stocks breakout of their range. Mov avgs are taken out.
Nobody goes there anymore, it's too crowded"
Yogi Berra
Know where the crowd is. Learn some psychology.
Why is there selling at double tops???
Because the people who did not sell at the previous high have another chance to do so while the traders that bought the dip are using the previous high as a target for thier short term trade.
Knowing what the crowd is doing is very helpful.
Anytime you like a stock make sure you like the stock in a monthly and weekly too. Draw the channels and trendlines in all time frames.
I have been branded a shorter term trader and that's a fair call.
But I am trying to lengthen that time frame everyday. I have learned to take losses much quicker but I still cannot leave profits on the table for too long. We all have to start where we are comfortable from. Some start as day traders and others begin as investors. Trying to meet in the middle is a good goal for both.
As far as presenting, I am not preparing for it formally. The best experience from Biloxi was the informal 'gather around the computer (4 of them)'. I would rather do a Q&A type of thing but we'll see.
Remember, I am not a teacher but a student myself. When I post I hope to benefit others who know less with the hope someone who knows more can straighten me out.
Good 'talking' to you again,
Regards,
Jerry
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