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Strategies & Market Trends : Trade What You See, Not What You Think -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (26)	10/15/2000 12:03:53 PM
From: Threei	Respond to of 867

KM, That's a tough concept for some people (me too in the beginning) - to say, "I bought XYZ at 30, sold at 32 - now you want me to buy it again at 34?" but each trade has to be viewed as a "new" trade with new history, etc., agree? I do agree with it. Ideal mindset for me in this regards is: I remember what happened before in order to gauge following activity with more accuracy, but I do not allow emotions to impact next trading decision. Let me elaborate on it a little. In the example I set those were two different setups and they were to be treated separately. While stock was trading in a range I was scalping it within a range. When stock showed signs of breakout I bought new high. Usually it goes like this: ABCD went from 19 to 20 1/2 and pulled back to 20. I bought 20 1/16 on signs of bottoming and sold 20 7/16 if stock has paused there. It made a couple movements within this range bottoming at 20 3/16 and 5/16. I consider it to be "mini-trend" within a range - sign of underlying strength and breakout upcoming. Now I am willing to buy 20 9/16 or 5/8 if stock goes through 1/2 barrier with conviction. It does take guts initially to buy higher than where you sold... then it becomes routine: see setup, take the trade. Vadym

To: KM who wrote (26)	10/15/2000 12:24:39 PM
From: Threei	Respond to of 867

KM, But still, how are you dealing with these frequent ad hominem short attacks in the context of your own tape reading? They're not really a reflection of the normal supply/demand equation. I suppose it can be reversed as well, with "long" attacks. I would qualify it rather as trick and perceive it as such. Tape reading is intended to read natural supply/demand. If someone tries to go against natural flow he might succeed in very short time frame only, or he will get scalded. It might be not short attack but just desire to get filled on the buy side bidding the stock. The same I often see on long side: huge bids posted on several ECNs just to get rid of several thousands of shares at the offer. Try to hit them and they disappear all at once. We had discussion about it once when I said I don't like to call them "fake bids". Really, if you can hit them they are not fake. So, member came up with abbreviation which we liked very much: NITBBs - No Intention To Buy Bids :) Vadym