Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: chris- who wrote (287)	1/20/2001 7:35:42 PM
From: Moving Sphere	Read Replies (2) \| Respond to of 867

>>" I was looking at it in a fashion of "how can I learn to better work through the initial congestion of the trade if the trend is to continue".<< There are many way a congestion can play out. But they all follow the same principle of buying or selling breakout. A personal touch of money management is all there is to play these congestion. Is the trend going to continue? No one will know until after the fact; thus, you are still relegate to the decision of the moment when your trade is still alive. Each breakout of a congestion is unique and vary in intensity, even in the same stock you are trading. A hot shot institutional trader might have a good day that morning and decided to load up on that particular stock you were buying. Suddenly, you have a strong breakout on the upside. Or, this same hot shot trader took a big hit from another trade and decided to unload the stock that you were buying to take advantage of the breakout. You see, all these factors make up the randomness of the stock market. Therefore, my point is that we need to develop some intuition of evaluating the trade of the moment and not get bogged down on the technical part of the congestion. Tape or TA principles are great way to establish a setup for trade entry; but once you are in a trade due to the setup, your intuition should come into play. Going back to the hunter/animal analogy... how each animal react to being hunted is very unique. Is it in an aggressive mode that it wanted to attack you instead of trying to run away? Fight or flight? If your intuition told you that it wanted to attack you, you would want to abandon the trade immediately before your protective stop was triggered. Sure, there was no way you would know if your intuition was corrected or not at that moment of your bailing out the trade; but that is the whole point of trusting yourself as you have emphasized so many times. That is why you must let the trade go once you bailed. If you don't, you will only create doubt in yourself. If you want to work on "...tape principles for trading and am working on the introduction of TA principles into my system as I feel it will only benefit me to understand more about the market function.", then I highly suggest that you do it on historical data and NOT on the trade that you just made. >>"As for your meditation techniques, I'm a big believer in Eastern Philosophy. Meditation, breathing techniques and martial art principles of discipline and confidence go a long way within myself."<< Yes, martial art principles and Eastern philosophy all emphasize a clear mindset and not letting our ego and thought to dominate us. You will be surprised how practicing martial arts (I do Tai Chi) can help improve your trading tenfold. Cheers!