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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (955)	6/18/1999 12:35:00 AM
From: Judy	Read Replies (4) \| Respond to of 18137

Richard, excellent posts!...as usual. Great for organizing thoughts and generating more. Anyone: May I ask for some clarification of the statements "cut your losses and let your profits run" and "have a plan and trade the plan". It seems to me one contradicts the other as to having a clear cut exit point at the time of entering the trade. Plus, some say % - some say points - neither "let your profits run". I know it is contingent to some extent on the time frame for the trade. Most probably I am missing the obvious on how these two statements can be made and followed at the same time. TIA Judy

To: Richard Estes who wrote (955)	6/18/1999 12:53:00 AM
From: -	Respond to of 18137

Richard, No 'rambling' detector going off here, two very well-articulated and eloquent posts... chock full of great insights! More! The thread will appreciate it. -Steve

To: Richard Estes who wrote (955)	6/18/1999 1:39:00 AM
From: Maarten Z	Respond to of 18137

Richard - good post My two cents on the subject. TA is the analysis of price movement. Price is determined by the multitude of variables that play upon the motivations of buyers and sellers in a market. We all know what these are; international and domestic events (both economic and political), industry and company specific news, institutional and insider trading, MM manipulation etc etc. Therefore it can be said that TA as it charts price - by definition is translating the effects of these variables. However as a trader looks back on historical data, he/she only has the patterns to analyze not the events that lead to the creation of them. Unless of course the trader were to take each chart and make notations of all the external variables that came into play on a daily basis. This would be, IMO, the most effective way of using charts. It seems to me that TA is the most effective in forecasting micro movements in stock price during those times when a stock is not effected directly by news, while an analysis of the markets perception to external events is more effect in predicting macro movements in price. MaartenZ