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

To: Dan Duchardt who wrote (56)	10/15/2000 10:30:36 PM
From: Threei	Respond to of 867

Dan, great point! of late my observation has been that the faster price moves toward a critical level, the more likely it is that level will hold, even if it is pierced, which means that jumping in on a mo mo wave is far too dangerous, and exiting on one gets you out of a lot trades that ultimately move in your favor. Anyone who has the solution to this dilemma has my ear. I wouldn't venture to say I have ultimate solution... but situation you described looks to me like the trade was entered before capitulation phase. Naturally, fast selling scares a trader out of position, and usually it happens exactly at the bottom which is indicated by the most furious selling. Now, real challenge is to tell capitulation bottom (also known as V-bottom) from the bottom put through congestion... Second type is way harder to read but easier to enter (easier on nerves I mean). First is relatively easy to read and very hard to enter... exactly the case where discomfort and profit go hand by hand. Vadym

To: Dan Duchardt who wrote (56)	10/16/2000 10:16:10 AM
From: Sharck	Read Replies (1) \| Respond to of 867

Hi Dan, One of the main reasons that many newbie traders find themselves getting "stopped out" at the low of the day is because the MMs have to go all the way down there to get your shares. In other words, your stop is seen by them as a sell. Why would they not go down and take you? Think about it, its free money for them. I have suggested a few ways to avoid this from happening on Sharck soup and can certainly address what works for me here. Good luck, Trade smart, Sharck