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

To: Jenna who wrote (5460)	2/27/2001 10:33:50 PM
From: Dave Gore	Read Replies (2) \| Respond to of 6445

Jenna, EDUCATION is one attribute that you and some others are great at. I spend a good deal of time, too, but most are not willing to. But there are other reasons why so many are having a hard time being successful. 1) They trade on emotion and/or with no plan. 2) They can't or won't short. 3) The "Game" keeps changing. (e.g.- Remember when INTC warned late last year yet the stock went up? How about when all stocks went down on earnings, then for a week or two all started to go up on earnings for awhile? High PE stocks were ok, then not ok., etc. Even a strong close on high volume won't assure follow-through the next day anymore. Too many just can't keep up anyway with the changing rules of the game. 4) Too many "experts" and too many trading options make people indicisive. Being a consultant, trainer, salesperson and admisitrator at times, I know that focus is key to getting maximum performance. But investors are faced with hundreds of posters on dozens of websites, countless financial magazines, trading rooms and a game that is constantly changing that makes focus very difficult. Even if you find one person who has a great track record and who you trust, that person often has so many picks which require such precise timing that it becomes nearly impossible to benefit. I am not sure that you can hold onto stocks "for 2 - 3 days rally days" like you claimed in your last post. First off, I don't see many three day rallies. Even sectors like the BTK lately seem to rally no more than 1-1/2 to 2 days. That is my point, too much whipsaw action (even intraday with 15-20 point NQ movements UP and back down in 2-3 minutes!). No matter who contributes to its cause, this is a very difficult way for most to make money, especially when coimbined with the other factors above. WHAT CHANGED MY APPROACH: Dateline Late Nov. 2000 When ELNT was going through its really difficult and unjustified fall, then violent intraday whipsaw period in November and December, it was almost impossible to get people to remain calm and hold it. You couldn't talk people into buying it at $20 in Late Dec., a traditional great time to throw a dart and buy almost any stock, let alone one that was massively oversold. That told me that people were extremely fearful of holding even the good quality stocks. It's violent weekly and intraday action forced my to become a scalp and daytrader who couldn't leave my chair or screens. I did quite well, but really didn't enjoy myself. But what choice is there really? Believe me, I long for more sanity and I love swing trades. That is really my strongest suit. But I don't see that as a good strategy yet. PS-- Once again, I am not trying to make anyone feel guilty about scalping or daytrading. I am just saying that I wish it wasn't as necessary as it seems to be.