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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Apakhabar who wrote (10983)	12/17/2000 12:11:34 PM
From: aldrums	Read Replies (1) \| Respond to of 18137

I just mean there is a huge difference between trying to teach people to look clearly at the market action and not let their biases influence their appraisal, and teaching somebody to buy "ordinary" capitulation selling for a bounce. The former will be of lasting value, the latter will, in time, be just another technique that the market absorbs and eventually de-fangs. In other words, the specific trading strategy is MOST useful in the long term insofar as it illustrates the psychological thinking that went into it. IMHO. Ap, IMHO I would say fear (i.e. capitulation selling) and greed are the hardest emotions / psychology to hide in the market. The foundations of TA will continue, and there will always be astute traders acquiring shares at lower levels and selling to the public at higher. Threei and Chris do a great job explaining the psychology behind stock movement, and personally I won't trade any setup unless I understand the psychology of the traders that creates it. In the past few weeks when liquidity was low and the bear market was taking hold, Threei told us to do two papertrades at a time when one of our setups occurred. One papertrade would be as the setup suggested. The other would be AGAINST the setup. I think this a simple but brilliant strategy. It takes into account the "Pattern Failure" concept that Alan speaks about often. I think using this technique when the market is behaving in an unfamiliar way will allow us to adjust and modify our setups so we may continue taking profits. I have a feeling Chris and Threei can adjust to whatever the market brings, and hopefully I will be able to adjust along with them. Alex

To: Apakhabar who wrote (10983)	12/17/2000 12:21:39 PM
From: Threei	Respond to of 18137

Apakhabar, I agree that "how to read, how to approach" part of our teaching is of more fundamental value for traders. But I wouldn't say that things you mention as "technique" part is just techniques. Capitulatory selling, breakouts, retracements etc are not just techiniques, IMO. Those are fundamental basics of market movements and won't change as market adjusts. For them to change, psychology of human beings has to change. This kind of things can be found in start of the century books. What does change is details of how it happens, how it's being reflected on different tools we use, particular scenarios. And we adjust to it as it happens. Also, set of setups that work in particular market conditions changes, and it happens sometimes on daily and even hourly basis. Last week, for instance: Monday was breakouts day, first half of Tuesday too. Second half of Tuesday, entire Wednesday and Thusday were dictribution/occasional short squeezes days. Monitoring market behavior we pick setups that work and stocks that behave. This is how daytrader works and adjusts, IMO. But basic set of scenarios is pretty much the same. New technology and tools appear, new tricks surface as market adjusts to increased amount of those who found inefficiency and the way to exploit it... they change map somewhat... but what is it they change? Psychology of participants? Nah, I don't believe it. Tactics change, tecniques change... that's it. Vadym