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

To: TraderAlan who wrote (5586)	11/21/1999 10:15:00 PM
From: OZ	Read Replies (1) \| Respond to of 18137

I agree with everything you just stated. I just do not like it when people decide to fade something just because a bunch of losers see it as a holy grail. There is no single holy grail. The only holy grail is the synergistic sum of all the pieces that we all talk about as a group. I also hate this crap about not looking at what the market is doing, but ONLY what yours stock is doing (not one of your comments). Sometimes (always) people feel that if they have something that works for them, then they can apply its validity globally. By the way, most of all my efforts have gone into T/A and stock picking. Then they went into emotion and psychology, then money management and now the next step for me being a better trader is learning how to deal with the losers through better execution and how to get into a position more effectively on the breakouts to increase the risk/reward and not have to chase the stock. OZ

To: TraderAlan who wrote (5586)	11/22/1999 1:56:00 PM
From: Robert Graham	Read Replies (1) \| Respond to of 18137

"For example, trading these off a 60-min bar offers much less risk and likelihood of the black hole you describe". True, but also a 60-min time frame still would require higher risk in the form of a larger initial stop loss when compared with smaller time frames. And it may not be necessary to go all the way out to the 60-min time frame to find price respond well to natural support and resistance. For example, the SPOOs work well in shorter time frames like the 5-min time frame. This would give the trade a better selection of trades to choose from day-to-day in order to make their living, which also means they will feel more comfortable and less pressured with being more discerning in their trades. This is just a comment that came to mind while I read your post. I do agree with the message you were giving in your post in stock selection and timing being important ingredients to successful trading. I will say that IMO for intraday trading, timing ones entry to avoid whipsaws, or worse yet, price backing up on you showing the trade to be on the wrong side, is very important. I find that when a trader has problems being whipsawed out of positions, widening protective stops is usually not the answer. It is more a matter of the selection of setup to trade, and quite frequently the entry that is chosen for the trade. Also there is the possibility that the way a stock is trading that day is simply not conducive to trading. For example, the SPOO at times gets choppy where it makes any attempt at trades unworkable that are managed on the basis of a profit to risk requirement. The best thing to do during these times is simply not to trade that market until this price action changes in another segment of time in the market later that same day or even when necessary waiting for the next day. When price with any frequency quickly backs up on a trader during the initial part of the trade, most likely the entry was poor and needs to be reevaluated for both the market and the setup that is being traded. These two IMO need to go together in determining how a trade is to be managed. There likely was evidence in the preceding price action of the stock to tip the trader off to this possibility of price reversing on them. Out of all the trading that I have done over the years, this has been a very rare event that does not necessitate a special exit strategy other than allowing the current stop loss to take me out of the trade. I suspect frequent whipsawing of trades happens when the trader gets too focused on the minute detail of price action without considering the context it is occurring in that is provided by the price action that lead up to what the trader considered as an entry. This is one of the hazards of trading in small time frames with a focus on price action. IMO gearing trades more on setups than price action helps provide this context, and very importantly, the perspective the trader needs to maintain. This is also why I frequently look at the larger time frames as the market progresses through the day. This maintenance of perspective during ones trading relates to the discipline I have talked about in previous posts that help me locate and trade the setups that work with my style of trading. FWIW. Bob Graham