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Strategies & Market Trends : Harmonic Trading with The Phoenix -- Ignore unavailable to you. Want to Upgrade?

To: the-phoenix who wrote (841)	7/6/2003 6:44:53 PM
From: skinowski	Respond to of 941

underlying signals used to enter can be just about anything Gary Smith, the TV "Chartman", described a couple of years ago in an interview in the "TA of Stocks and Commodities" his own trading system. As I recall, it works the following way: A computer screen generates for him daily a list of stocks which are in the process of breaking out of consolidation patterns. Gary reviews the list and picks out manually several charts which he "likes". The final list gets faxed to his broker who enters the positions and does the further "management". The criteria are very simple: He takes a 6% profit - or gets taken out with a 3% loss, whichever comes first. I might be missing some subtleties, but that's the overall idea. His system is profitable over time. Occasionally, during a sharp "V" reversal, both his longs and shorts lose out, but that doesn't happen very often. He sees it as one of the advantages of this simple approach that it takes relatively little of his own time, so he can write his articles and do other things which he enjoys. I submit that this is not a bad overall philosophy...