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

To: LemonFlavor who wrote (805)	10/26/2001 10:00:13 PM
From: Threei	Respond to of 867

Actually it's just about difference between "buy low sell high" and "buy high sell higher"... Being trend trader I am having hard time buying stock at the low unless it got there on fast capitulatory selling. And they are comfortable with it. As for particular setups - it's hard to describe them without charts or at least simple drawings (like we did with aldrums in Anaheim using napkins :) Vad

To: LemonFlavor who wrote (805)	10/27/2001 6:49:30 PM
From: Ta_Bo	Read Replies (1) \| Respond to of 867

>we have different style traders in our room and there are many that trade this kind of days just great. I watch them in awe. >I'm interested to know what is it about these traders that is different from us who like trend days and how do they trade well on days like this? What setups are they trading? On "balony days" where the market is just chopping. Forming new highs new lows, new highs new lows. The areas where stop loss orders cluster act as magnets. A fading approach usually works well. Find the breakouts/ breakdowns, let the initial pop take place then fade it back to the break's stop level. Personally I tend to back away and sit out this type of action. In the last year I have finally overcome the need to be all things to all markets. Rather then gritting my teeth and slugging it out, I have found that I am much better off to zen out, and wait for the trade to come to me on MY terms. This inner peace, the self trust that if there is money to be made I will have it has taken me a long time to achieve. I have found out the hard way that there is much more money for me when I'm super picky. I've gone from 5 trades a day to 1 or 2 tops. My stress level is way down, consistency and risk to reward ratios are way up, other then some anthrax spike frustration life is good :) SO, take a look at what type of trading you are best at. Then think about what your returns would look like if you only traded that one setup/style. Fewer setups, more accuracy, better consistency? If so, consider taking a little bit more risk on each trade, and let your increased consistency pay off! Don't get sucked in to the mental need to trade every kind of setup in every kind of market. Trade only YOUR kind of market, and trade it with proper size and confidence. Good Luck and Good Trading! -Bo Yoder bo@realitytrader.com