Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: shasta23 who wrote (5347)	11/12/1999 2:21:00 AM
From: E. Davies	Read Replies (3) \| Respond to of 18137

I too feel the sting of a lot of missed opportunities lately. It has long been a problem that I get in to early and get out too early too. Cuts way down on the profits. As of today almost all of my long term positions are above the covered calls I sold against them. Any further runup I wont be participating in. I wouldn't feel to bad about this one though. The Nasdaq is more frenzied and short term overbought than it has been in a very long time. There is no reason for it either, except that we survived the dreaded October without major crisis. There is an art to letting winners ride. It takes just enough "irrational exhuberance" to choose to ignore common sense without losing control of your emotions. Here are the two rules I try to make myself stick to: 1) Watch the trendline. Buy at/below the trendline and sell when the stock breaks up out of it. I measure "overbought" by very simple criteria: % above the moving average. 2) Wait for the panic. Buy on a selling panic, sell on a buying panic. When people panic you know someday they will get over it. Its a good way to take advantage of the inefficiency of the market. Trends usually (always?) end in some form of a panic. Thats how you know its over. Eric

To: shasta23 who wrote (5347)	11/12/1999 8:09:00 AM
From: TraderAlan	Read Replies (1) \| Respond to of 18137

Stafan, I saw a big piece of this move coming through TA. NASDAQ gapped through channel resistance on high volume. I had been watching that same line on every hit and failure. This isn't a brag. Just paying attention to the information in front of my nose. Last year, I completely missed the bottom call on the panic day when CSCO was down a million points. But Chris Worden at TC2000, another "chart" guy called it exactly. The information was there. One advantage is that I stay informed but don't have much of an opinion on the news. Also after doing this for many years, you develop a feel for the cycles within the market. Then there is that ultimate advantage: as a daytrader, the only trend that's important is the one I'm trading that day. I own LU from 60 in the summer in the 401k. When it dropped to 55 a couple of weeks ago, I didn't know to buy more. Up 22 points since then. The best way to smell change is follow and do TA on the indices. Use a site like decisionpoint.com to see market internals. And learn whose opinion to trust out there on the Net <g>. Alan