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: Apakhabar who wrote (473)	3/26/2001 7:56:32 AM
From: chris-	Respond to of 867

I certainly hope the trade works out for you and let me clarify one point...this action is not for the undisciplined. I was speaking to those traders that see such action and think of the potential, rather than the risk. You, as a professional trader, can manage risk while watching potential so I'm less concerned about "you" in this scenario. However, there are often too many "excited" traders watching such action that want to participate. Then once in the halt, their excitement turns to anger, and we all know where that leads to...rationalizations, developing scenarios to support their position, etc. Notice I don't say: Creating an exit plan. They want their rationalizations to allow them an exit, not a disicplined trading plan that you talk about. The chart doesn't give this stock justice as to the action involved. Yes, it looks like just another capitulation candidate, but in watching it's personality, it was just aggressive selling with no news. Much different than a stock that: Pulls off a high into resistance and those that bought the high get frustrated and all sell at the same time creating the capitulation or Stock breaks a new low and those in the stock sell as the support is broken at some same point in time together creating that "fast selling". I like that you calculated risk, assumed the risk, and therefore took away the gambling portion out of the trade. Too many message board posters and other chat room participants just bought it because: "the P/E is great now, it's just a rumor, look at how much potential it has (was at 30, now at 17), etc. You and I know this isn't about trading. This is just the same newbie excitement that took out a large portion of our traders from Nas 5000 to 2000. All the best, Chris