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

To: Chris who wrote (26602)	8/2/2000 2:09:22 PM
From: Electric	Read Replies (2) \| Respond to of 42787

Chris, EXACTLY!!! That is the worst. Selling exits are the toughest, both with gains and losses on a stock. I dont know if anyone really wants to share their "real" levels of "max-pain" but if anyone would like to, I think it would be helpful. It is a crucial aspect of trading. When I have been successful I use a 10% stop. When I have had large gains, I still am working on an a proper exit. Thats where I have had the most trouble.. Any comments?

To: Chris who wrote (26602)	8/2/2000 10:59:21 PM
From: Lee Lichterman III	Respond to of 42787

Well it is hard for me to write when I am shaking thinking about Don going big time short but.... I figured I would chime in with a lesson of my own. When switching forms of trading or starting something new, always start by admitting you are a novice again. I did everything right when I started out the second time ( I had to take a break from the market due to a divorce for a few years). I re-read all my old books, paper traded, then started small, working my way up and pretty soon was nailing every turn in the market. I could do no wrong since stuck with only stocks I knew etc. Then I decided to trade options. I lost everything I had in the first 3 months. Trading long is different than shorting. It shouldn't be but it is. Options are different from Common Stock. Futures are a totally different animal. I have read similar stories from stock and option Gods. These guys could do no wrong and yet got torn apart as they entered the futures markets. Last, the more the leverage, the more dangerous. If at all possible, stay away from margin. I know I am in the minority in this view but count your stock market activity as money already lost. First you shouldn't be trading money you need in the first place. Second, once you think it is gone, it will help in eliminating some of the fear that can make you do dumb things like sell at bottoms. -gggggg- Dennis, I almost bit today too but GE stayed negative all day and I still believe GE is a good indicator all by itself. Once TRIN started trending up, I knew it was short lived. Good Luck, Lee