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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Stoxx who wrote (14428)	1/6/2001 6:44:06 PM
From: Knyyt	Read Replies (1) \| Respond to of 39683

TC, <<Beckya was an advocate of this, as I recall, though she used the third, I think, as part of the MAX signal itself (5/8/20>> Yup, that what i saw her post and what gave me the idea. cept i lengthened mine. <<check the daily chart for the dominant trend and trade only in that direction; e.g. most of our watchlist is currently trending down strongly so one would take only short signals until a base was established on the daily chart (higher low followed by higher high)>> For me, i need a purely mechanical method. I am primarily am/was a system daytrader who is evolving longer term for the past year or so. <<in daily charts showing a horizontal channel (BEAS is close to this) trade both ways>> Again, i think my eyes would decieve me if i tried this. <<trade full strength in the direction of the dominant trend, and trade half strength or less in the direction of the correction>> Again, for me this would involve thinking.I want to trade full strength all the time. My thinking is with a big enough watchlist, you get actually to many signals. I have 84 stocks in my TS database that are cream to BTT-MAX, i go through each month and pick out the best based on avg daily ranges.( Another way that takes out all emotional BS ) <<instead of using stops to exit, try setting profit targets based on areas of support/resistance>> I need stops. One is the comfort they provide against price shocks. Another is i work 3rd shift and hit the hay around 12 in the afternoon every day. Not watching the market i need something to protect. As far as profit targets, i am wayyy against those. I pose this, If you went long at 50, and you set a profit target @ 55, and it was hit and you are now flat with your profit. You were correct in your entry and direction. What if it goes to 60? Why did you get out when the price went in your direction and you had a profitable trade? I would think, would it not be better to trail a stop, say, 3% from last high? <g> Scenerio: Long 200 shares of ABCD @ 50. Exit Long Profit target 200 shares of ABCD @ 55. Profit= 500 - commissions Scenerio#2: Long 200 shares of ABCD @ 50 Trailing 3%stop <------ Can anyone answer this, where did the trade exit? I would definately invite discussion on this as this is the point in system/method i am most working on. Regards, Knyyt