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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (27890)	7/30/1999 8:08:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

On complexity and understanding of markets.. In a fast market time tested approach is to believe in your levels, don't ever get confused, outline a strategy, most of the people who complain tend to overlook the most important instrument of the market SPU or S&P current contract, rarely people notice the premium which indicates a lot and rarely do they relate leading indexes to S&P, like NDX SOX DOT BKX PSE,, making cross references within these indexes is seriously important. The advent of big selling and the moment of truth for the market when it looks the worst, is possibly the time when it is about to back up or stabilise. Bull marekts are no sensations, the people who have been shorting these marekts from 8000, rarely get noticed when marekt moves in opposite direction a fall in the market inevitably attracts 'sensational' aporaches to the extent that someone yesterday ws trying to find a connection of 13 man killing with 180 point drop in DOW. A bear keeps prawling and on days like yesterday would come out and say see 'I told you so I am in cash', my foot, he has been in cash from CSCO 30$ pre split.. now 6 times more. Bull markets 'will and need to retrace' this is the best medicine of a continous solid bull market. Actions like yesterday would come and they would only provide opportunity. Nothing to fear like 3000 point move up from 8000 where I called it a steal, we can see a 2000 point drop but for a long term investor these gyrations are part and parcel of daily investment, the portfolio investment performance can be increased by trading around your core. I insist that like I have said Sept long puts 1280's will pay good returns as volatility sometime multiply premiums in out of the monies, when you want to purchase on the day it has broken you rarely get you spread filled. Millions of times this has been one message highlighted market mavens but is always ignored. Market has steadily moved up over last few months from 9500 where it was a long term top for many a gurus now here as we see slowing down other competitors are emerging like Japan and Europe, we need to tread on these waters carefully but very focussed. Levels once identified should hold and when it matters the most people should not overlook them. A good trader and bad is trader has only one difference, a good trader has time on his side, his trades are not restricted with time and capital adequacy, he buys options and buy calls or puts and never sell's them. These two features are the basic difference between a trader which will get whipsawed more often than not. No amount of exotic stuff will tell you points like 2230 on NDX a rebound forecast of 1338 on SPU SOX DOT BKX PSE points which are respected, it is from simple charts simple trend lines and simple moving averages, gap openings get filed. If these basic tools are applied to learn a move with a good open mind to define and clear hype from reality, the trader that emerges makes money in day trading. Keep this as a core approach and you will see that market is about knowing fear, greed, major indexes supports and resistance's and market more often than not is event driven . If after couple of years you still don't know what is role of SPU in day trading and trade marekts off DOW, you will naturally unable to understand me. Idea's approach is to treat market on a daily basis without setting targets in cement. Although, I have long term targets but within a day the outisde limits and boucing points should be known to any day trader, my thread is destined to bring ratoinal approach to the market, anyone reading this yesterday would have ralized that stories and rumors of this is the begining of the end were pure exaggeration. Yesterday and days like them are reality test, those who made moeny on the way up and still end up making money on days like yesterday are da man, rest is all noise.