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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Molly Mayhem who wrote (103742)	6/22/2000 3:13:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

Molly, just got your message. Yes the trading pace and the volatility does more than suggest that you have stop losses. The market can sometimes turn on a dime and like ABSC which I entered got my 1 5/8 and bailed would have killed me without a stop loss. You might expect 25% of trades to be stopped out either with a profit or without but without a stop loss it can be larger. The market essentially trades 4 times a day and the best trades are made between 9:50 and 10:15 and then closed at 10:15 for more trades from 10:30 to 11:30.. then there come the lunchtime doldrums from 11:30 until 2:00 when the market is usually trendless. By 2:30 to 4:00 trading can take on a completely different focus. Today for example, I've closed my long positions by 2:30 and started to zero in my short positions and adding to them. If the short positions had gone sour, I would have bailed. But I let the dominant positions take over at 2:30, and for me they were the short positions. You must track the nasdaq futures, the trin, the tick and even the CME 10 minute chart. By doing this you can pinpoint changes in the general market trend which usually translate into the trend of your stock position. Bullish and bearish divergences in the market direction indicators are good indications of new directions and you should be attuned to them.