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

To: cloudless who wrote (5881)	12/7/1999 8:25:00 PM
From: Richard Estes	Read Replies (1) \| Respond to of 18137

"paralyzed me until today when I saw an opportunity to get out" You had the opportunity from the confirmation of the trade. We all have the problem sometimes. Selling is more important than buying. Some things to help us: * Know yourself. Are you an investor or a trader? Decide before the trade, don't try to be both. * Decide before the trade, what is the biggest loss you will take on a stock. The stop loss of last resort. * Use a get-out indicator. This one is that determines normal exits. A Moving Average is a good one here. Do you want to be in a stock trading below the average price of the last XX bars? fill in the Xs with your perspective. * Everyone has losses, the Winner has no big ones because he does not expose himself to one. * NO stock HAS to come back in your time frame! Wishes, hopes, desires won't make a stock come back. * When a trade does not act as you expected - Get Out. There is one good thing about an effective TA system. It tells you when to get in and when to get out. News, funnymentals, most patterns, brokers, newletters, stock topics, and web sites don't. Even if someone else did tell us, it is not their money that is at risk.

To: cloudless who wrote (5881)	12/7/1999 10:04:00 PM
From: OZ	Read Replies (2) \| Respond to of 18137

I didn't want to dump it at a small (1/4) loss so I took it home. Well I've been taking it home every night since 11/23 and it totally paralyzed me until today when I saw an opportunity to get out at 44 15/16 and took it. Cloudy, I do not mean to ruin the christmas party, but I find this statement shocking. You let the stock run against you 7 points during those ten days. On your other post you were booking fractional profits on you trade and were very happy with that. So for a 1/2 point profit you are risking a 7 point drawdown. You would have to be right 98% of the time to make money that way. Consider this experience a loan from the NASDAQ and it will take it back. One other constructive comment is that on your other post you scalped 500 shares and booked a small profit. After the next breakout you bought 1000 and then 800 shares. The higher the price of the stock intraday, the higher the risk. Therefore you should not be "Doubling Down" amidst the euphoria. I learned this the hard way and that is why I am sharing it with you. The moral of this post is that you need to focus on risk management. intelligentspeculator.com If you follow the Risk Management strategies at the site, Pretty soon the clouds will clear and the sun will shine and you can truly be as Cloudless and clear as you can be... OZ