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

To: Bilow who wrote (3817)	9/12/1999 9:43:00 AM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Carl, There are many good fundamental reasons to short a rising stock but the only good technical one is a rise into strong and clear resistance. Alan

To: Bilow who wrote (3817)	9/12/1999 3:20:00 PM
From: Tai Jin	Respond to of 18137

Yes, there are good reasons for shorting while a stock goes up (or buying while a stock is going down), but it is definitely not something that a beginning trader should try to do. Sometimes it is best to get out of a losing position without adding to it, but other times you can add to it and get out with a smaller loss or even a profit. The fact that we cannot always pick the top or bottom means that we will inevitably get in on the wrong side of a trend, at least for a short time. It all depends on the situation and how much risk you are willing to take. But in general, it's probably best not to go against a prevailing trend unless there is compelling evidence that the trend is about to reverse. The signals for reversal are generally more reliable on longer term charts, and as a result getting into a position trade before the trend reverses can be highly profitable. ...tai

To: Bilow who wrote (3817)	9/14/1999 12:37:00 AM
From: Paul Viapiano	Respond to of 18137

Your post caught a lot of responses from people who felt that no trader would add to a losing position, and that this would be contrary to good trading practice. If a trader knows ahead of time that he will be scaling into a position (whether long or short), then I don't have a problem with that. By defining his intentions from the start, he will have picked a range of entry that is applicable to his goal for the trade. What I don't condone is a trader who hangs on too long, doesn't cut his losses and then decides to average down (or up as the case may be) in order to recoup his losses. Paul