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Pastimes : Play It On Paper- Clappy's Newbie Option Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (104)	7/29/2000 8:04:48 AM
From: Clappy	Respond to of 176

Hi W2, I've read a few books. I'll list them an make a comment about each. Trading For A Living by Alexander Elder. amazon.com Excellent book! It has taught me more than any other book. It discusses Psychology, Trading Tactics, and Money Management. I also bought the work book that accompanies it. I haven't used it yet though. I give the text book 5 stars. Technical Analysis of the Financial Markets : A Comprehensive Guide to Trading Methods and Applications by John J. Murphy amazon.com Excellent Book. This one covers almost anything you'd ever want to know about TA. It's well worth it's high price tag. However, Disu showed me a book seller that had it for almost 1/2 price off. alldirect.com I give it 5 stars. The Visual Investor : How to Spot Market Trends by John J. Murphy, John L. Murphy amazon.com I haven't had the chance to read this one yet nor have I test driven the charting software that came with it. John J. Murphy is the dude who used to appear on CNBC a few years ago to do TA. Back when Niel Cavuto was there as well. The Technical Analysis Course : A Winning Program for Investors & Traders by Thomas A. Meyers amazon.com This was the first book I read on the topic. It illustrates the various methods of TA. Nothing fancy. I think Amazon gave it a few too many stars... I like the first two books that I listed the best. There are a lot of sites that have TA instruction and analysis. Disu's "Tidbits" thread has a ton of good links. There is a lot of buried treasure there. Subject 34824 There are a lot of places that have charts. My favorite is: stockcharts.com[L,A]DACLNIMY[DC][PD!B200!B50!C20][VC60][IUE12,26,9!LC20!LH14,3!LJ[$SPX]!LK14] They have explanations of what the various indicators do and how to read them. Unfortunately their charts are only updated once per day at the end of the trading. If you look at that chart of RMBS, you can see it looks oversold according to the various indicators. There's also two gaps. One above yesterday's close and one below it. I believe both of this gaps will be filled. Probably the top one first. Therefore I plan to buy AUG calls for a day trade (or hold longer if there is good momentumn). But as soon as it begins to look over bought of if the market slips, I'll buy the AUG puts to ride it down to cover the other gap and test May's low. There is some resistance down near 60 and then at 50. RMBS's 200 day moving average is around 50 as well. If it breaks through it could sink fast to the 40s. However, the only way I think it will get that far is if the Naz crumbles with it. It's my opinion that the Naz is on it's way down to test the May lows. We may see a relief rally next week. However, I don't see it lasting very long without the volume to help sustain it. I think many people will use this rally to get out of some of their long positions. The Naz and the Naz100 have broken through some key levels of support that are considered to be bearish indications. Anyhow this is just my opinion. Anyone reading this junk, should take into consideration that I'm a newbie, a jackass, a stooge, a moron, and several other things. These are just my thoughts that I derived by reading a bunch of stuff, that I'm not even sure if I read correctly... Take it for what it's worth. -Clappy