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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (33111)	3/26/2002 9:19:32 AM
From: HairBall	Read Replies (1) \| Respond to of 52237

SO: I agree with you. The "smart" traders/investors realize that they are going to be wrong. Any good trade/investment strategy should include two strategies, what do I do if I am right and what do I do if I am wrong. In the “what do I do if I am wrong column”, one needs to have indicators that will help tell him or her when they are wrong. While a “stop loss” is one of the best solutions, stops on occasion get you out prematurely that is just a downside you learn to live with. However, failing to incorporate stops into your trading strategy is almost a sure path to tanking your portfolio. If one has an expectation of where he or she expects an index or individual equity to move, one should have confirmation triggers. On the flip side, one should also establish signals to watch for that will alert one as to when he or she is wrong. When providing one's analysis publicly as to which direction an index or equity is headed it is appropriate to provide signals to look for that would negate one's expectations. Regards, LG