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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Now Shes Blonde who wrote (8131)	2/20/2002 12:58:31 PM
From: kirby49	Read Replies (2) \| Respond to of 36161

Hi Mary: Working on some other things for you and will get that list from Peter and have it reposted here. Thanks for the reply and I do know how long it takes. Learned to copy type over 40 years ago on a manual typewriter, and could make it fly near 100wpm, so it's only my head that sloooows me down. I couldn't find the right link to the Dow theory through MSN but from your whew, I trust it's heavy. Will discuss the interrelationships between Dow components later. On the books and reading assignments. Here are my top three favourite that you can buy or perhaps get from your local library. I see they have used prices too! amazon.com amazon.com amazon.com Found another amazon.com This used to be self published, but I see Amazon now has it. Many think Dines a crackpot, but he has unique insights and an easy reading, witty style. Loeb and Elder are also not heavy reading, and Walker is a little tougher, but most important. Many never give it a second thought who they buy from, perhaps thinking it's someone like them at the other end of a computer link. Well it's not. You're buying from a market maker or floor trader whose job it is to sell short all day long and ensure that he is selling with the trend. His trend time frames and everyone elses are different, but he's the top dog, biggest money maker in trading equities and does it for the brokerage houses that have the seats on the exchange. When he's losing he trades more for the commissions. He's the house, the dealer and the odds are on their side. I've seen statistics that say only about 7% of investors ever sell short and whether you ever do or not, you have to understand it. As individual investors become more saavy (that's you) that percentage may go up, but because it includes fund managers, who are mostly limited by legislation, articles of charters etc, to be long all the time, it may not change too much. Two important things here. Selling short in a bear market is usually a quicker way to capital appreciation than being long in a bull market. The previous sentence about funds managers is the second, in that in these situations, you are not trying to compete with them as you are in a bull market. Short selling is what I referred to as the dark side. Hope that's crystal clear<G>. LOL about your husband. Guess you got that covered. Not sure, but if you mean by top down approach that you start with the big indices and break them down and do comparisons to find your sector and further to find your stocks, you've got the right idea. We'll do some basic chart work for this, but for now, most here would agree that if's its not a hard asset and can't be counted, everythings down. Although the threads been quiet I still daily check Cush's major index analysis and if you look back in the thread, you'll see many of us here having analyzied charts and can see how it's done. I always start with Bigcharts all data monthly charts and then move to stockcharts for closer time frames as I like using the ADX indicator. Using MA's, chart patterns and some indicators and reading the hard right edge may reveal something other than strength in that steep slope you mentioned. It could reveal the traps, that it's time for a pullback or depending on the liquidity, the time to accumulate was at the beginning of the trend. This is of course the best time to get in but is not the same as a value stock. Subject 23426 Franks post 8121 sort of reminds me of Loeb as I said. His theory is that no one should invest, as in LTBH, but to make money you must speculate. i.e. position trade a few positions in liquid stocks. Keep a few eggs in one basket and watch them like a hawk. Diversification is about the only way fund managers can reduce risk, but it's not the way for individuals to go. If I've steered you wrong here, I'm sure we'll hear about it from the regulars. Hope they pipe in with their favourite books as well. Notice I haven't asked a question yet. Well here goes. Let us know (without using dollars or no of shares) what open positions you have, your entry price, percentage of cash available, and any moves you're planning to make, i.e. closing any of these and opening others. My nine positions are well documented here as are others so don't be afraid to ask what we think about individual stocks and why. Regards Bob