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Strategies & Market Trends : Longer-Term Market Trends -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (337)	4/19/2008 11:47:32 AM
From: skinowski	Read Replies (1) \| Respond to of 3209

maps that support both 4-a) and 4-b) look the same for much of the time that price is falling -- the bull sees a correction and the bear is seeing new decline after an important top. This is where discipline, methodology and mastery of tradership (and educated intuition) come into play. Some of this is method and rules, and some of it is art. Otherwise, "quantifiable edges" and computer programs would take over all the wealth in the world. Few thoughts, for illustrative purposes: Take partial profits. Use multiple lots / contracts, and make partial exits (and re-entries) at support / resistance levels. This helps keep a cushion and withstand drawdowns along the way. Use time frame interplay. I may (partially) exit at what I deem to be the end stage of a structure which is nearing completion. If I see a "fresh" impulse against me, I will adjust the position upon a retracement. The degree of the adjustment will depend on my read of the larger time frame. Create and use filters and rules. Use channels, trendlines, moving averages etc. - but use them in a disciplined and consistent way. Observe sentiment. Remember that human emotions can swing to extremes, but ultimately, they "oscillate". They also can remain relatively negative - or positive - for long periods of time. Judge shorter term sentiment in relation to its recent "range". Often you will be wrong. Try not to be "too" wrong. Do not kick yourself too hard for losses - IF they occurred while you were doing the right thing. Make rules and identify "lines in the sand". Sometimes those lines will be right, sometimes they will mislead - but ultimately they are a must for the purpose of capital preservation. Be patient. A 1% win is better than a 5% loss. They all add up over time. If you are lucky enough to catch a trend, try your best to stay with it. Do not work too hard on any of this. There are things which are far more important. Remembering this may help in trading. Life is short. Post charts (g/ng). Putting together a proper chart clears the mind.