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

To: Raymond Duray who wrote (1822)	7/13/1999 2:53:00 AM
From: -	Respond to of 18137

OK, Ray - a fair trade. Overhead supply. Just take a day chart, and from the right side, look to the left. Everything above the current price represents potential "overhead supply" (depending upon up vs. down volume -- money flow). When you have too many people in a stock from higher prices, it becomes harder for the issue to rally -that is, "overhead resistance" is an assurance. Typically, the longs are selling out close to where they got in... glad to be back with their skin. There is still overhead resistance, of course, when you're in "blue sky territory"... just not as much, and not as predictable. On the topic of Day Traders & our collective 'image problem' as a profession... I really like the "Rental House" and "Reader" approach... will have to try those. Richard is right you know, for most people Bill's advice is right on the mark. That's why it's so irritating to be associated with "the day trader" tag... because a lot of day traders really are ill-equipped to succeed. I would venture that almost everyone trading off of chat rooms and internet hype, those that aren't working hard on their trading (actual skills) are going to be blown out of the market as their time comes (it takes a different kind of market, to take out different kinds of weaknesses). Those who are truly interested in the art of trading and genuinely immersed in SKILL DEVELOPMENT will still be there (assuming the fear/gread monster doesn't get them) however. The vast majority of people trying daytrading will fall victim though... so Bill is really right. The impression the press leaves - that short-term trading is a bit too easy; something that virtually anyone with a gambler's attitude can do successfully within a few months, is a bit annoying. As Cramer says, WRONG! -Steve