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

To: TheKelster who wrote (2790)	8/14/1999 10:17:00 AM
From: wallstreeter	Read Replies (1) \| Respond to of 18137

Kelster,what a welcome wallstreet gave me, i now know the monumentous task ahead of me. The weekend was good though to let me clear my head. Thanks for staying with me on this people wallstreeter

To: TheKelster who wrote (2790)	8/14/1999 5:50:00 PM
From: TheKelster	Read Replies (1) \| Respond to of 18137

This post is an adjunct to a post on the stock picking thread. It is a partial print of a reply to a past PM. I am posting it here to prevent clutter on the picking thread. Post begins: I agree with you completely. I do not think trading is all that complex. It does seem to be more a game of understanding the "feelings" of the many and playing a game that separates your actions from their actions. I do not think one can find a substitute for experience. I don't think the experience has to necessarily come from the market itself, although much of it will. In order to apply outside experience one will have to be quite introspective. This is where patience and discipline come into play. Give yourself time. You can learn all the technique, the timing, the concepts of the game, and you must first do this. But, what is going to be most difficult is the next step. When your technique tells you that it is time to enter you will invariably be going against the crowd. That's tough but that is where the money is. It is the first play in the battle between two teams. They are playing inside your head. It is a game of Intellect VS Emotion. If you make the right play Intellect gets you in when Emotion of the others are getting them out, or vise-versa. If on the other hand you have watched the best time to enter go by, and the stock is running in the direction you thought it would, your Emotion starts screaming for you to get in. If you let Emotion pick the entry you are off to a bad start, but you get in anyhow. Now you are in and the problem changes. It is more difficult. If your timing was good and the crowd continues to move in the direction you bet on, you feel good. You feel so good you don't ever want to get out. You stay too long at the party. The stock begins to turn on you. Now you begin to feel less good. You don't want to let that good feeling disappear completely. Your Emotions are now whispering get out. Your Intellect is suffering from paralysis of analysis, you may have been wrong or maybe you are still right. You were right at first, right? (don't you hate it when that happens?). When the stock is heading back down intellect can tell you whether or not the current trend is actually over. But, as it pulls back Emotion tells you to get out, get out, get out. The closer you get to the next reversal the more powerful is Emotion and the more confused is Intellect. Who wins? When the conflict is greatest you throw in the towel and of course the stock turns back and continues it's upward trend. Of course when you don't throw in the towel, the stock continues on it's merry way down. Bummer. If you stay past the intellectual break line a field reversal is executed. Right in the middle of the game, in the blink of an eye, the players switch sides. The trend has broken. You mental stop has been penetrated. Now your intellect tells you get out, get out, get out. Your Emotion says, "it might come back, it could be a head fake or false break out, stay in, stay in". Eventually when the play moves far enough away from any sign of profit your Intellect and Emotion join the same team and they both yell, "Get Out". IF you haven't by now, you really should listen to them at this late point. If you don't the next voice you hear might be your broker's. :-) KK