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Strategies & Market Trends : Intraday Updates, Analysis & Strategies for Daytraders -- Ignore unavailable to you. Want to Upgrade?

To: John NY who wrote (370)	3/15/2001 3:30:21 PM
From: Jenna	Read Replies (2) \| Respond to of 589

I do think that rooms (not just ours) are understanding how important professionalism, education and trained moderators, and a solid trading system and not random shouts and calls. I am aggressive only in my holds on the short side but lately we have been emphasizing capital preservation, risk tolerance and sitting on your hands when in doubt. A few traders were a little frustrated when we wouldn't buy the rebounds of certain short plays, but we would rather look for the predominant trend than attempt to "buy" the reversal of an ongoing downtrend. A rule of thumb, don't go long when the stock is in a predominant downtrend and is trading negative much of the day. Use moves up to reshort. Don't try to short stocks that are soaring in an uptrend, in an up market, instead use reversals to put in new buy stops and/or pick up more shares in another high of the day. It does not pay to go against the predominant trend, Dead Cat bounces are not what they used to be. I have tracked them for months and I notice (this is not a scientific backtested research) but I did notice that stocks that tank usually continue down up to 3 days after the original gap down. There are NOT that many willing buyers to go bottom fishing like in the past. I'd rather pay a little more and get a strong stock on a pullback rather then a falling knife that has not completed its downside.