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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: Sojourner Smith who wrote (593)	1/5/2001 12:01:09 AM
From: Jenna	Respond to of 6445

BUY SIGNALS..smart trading has become more of a techno-fundamental strategical system than just technical analysis. Most times you will find that the most important predicator of strong price movement will be ► Strong Fundamentals and Good Earnings (for swing traders that is especially important but it also important for daytraders) ► For Daytraders -----> the underlying Market Direction is paramount in importance. This means that even if your stock hits a buy trigger and the market SENTIMENT is dismal, the signal can easily pull a u-turn. That is why the intraday chart is important and whether the market is in TREND or just in a TRADING RANGE. We noticed today that about 1:50 when the Nasdaq 100 Futures began to drop from their 20 period moving average and the previous TRENDLESS nasdaq was strenthening its DOWNTREND... the shorting opportunities RETRIGGERED. Where the early shorts were still profitable from previous reversal periods they were not dropping with their usual alacrity. By 1:50 they did, and we were getting stronger gains than earlier. For some traders, they are so anxious to trade...that they overtrade using the doldrums period to "SCALP" when actually there is no trend in place. That when most trades fail. I would rather trade in a TRENDING market and forget all about BUY TRIGGERS, scans that spew out stock selections ad nauseum and concentrate on 10 or 20 stocks that consistently trade in the direction of the prevailing trend. ► Let the losers go, don't nurse them back to health. We can have a few losers during the day but not one day goes by where the gainers don't overpower the losers 3 to 1 and with much more percentage gains for the winners. But if you hang around and nurse the small losers until they become big losers you miss new trading opportunities. Basically its like the difference between a real trader and a chartist. People can be taught to read charts, but real traders are made when they can pull the trigger at the right time and when they make a mistake they can pick themselves up QUICKLY and change direction. ► If you are stopped out of a short/long position just don't go flat and get frustrated. Immediately change your trade in the direction of the prevailing trend. Lots of times when I take profits like TLGD today I would just buy the puts or short instead of taking the profit and going flat. Or if its a stop that triggers than go long/short. ► Always wait for the key reversal periods. Rarely have I traded before 9:45 unless its a spectacular day and their is some news driven economic event that drives the futures a lot over fair value. 9:50 to 10:00 is a good time to enter a trade.. By 10:10 you have probably locked it a profit and already raised the trailing stop to breakeven.