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Strategies & Market Trends : Stock Attack -- A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Riskmgmt who wrote (23100)	5/11/2000 2:27:00 PM
From: Robert Graham	Respond to of 42787

I think the reason "bottoms" turn out to be "tops" is that this market has been in the hands of the larger longer term monies during this selling campaign. So when the short term trader responds to a "bottom" with buying interest, this is the time the larger monies stepped in to sell. This has been the pattern for some time now. As a side note, "fear" removes the trader from their recognition of meaningful patterns in the market: the fear of losing money, or the fear of missing out on the action. In both situations, the trader is motivated by their fear and becomes disconnected from what the market is actually telling them. Only money management can keep them from significant losses when this happens. But then as they get caught up in their own emotions facilitated by market action, sound money management principles can also fall prey to this fear. This is when the trader is "too far gone" and takes a big hit. This "hit" can have a sunstantial psychological cost to the trader that can have its impact on the trader's performance for some time to come. And if enough of these "hits" are experienced by the trader, the trader may never recover. Greed is just the flip side of fear. And the most important asset to a trader is their psychological well-being and detachment as it relates to their trading. Just some thoughts. :-) Bob Graham