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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Boolish who wrote (156989)	5/6/2009 1:29:02 PM
From: Canuck Dave	Respond to of 312719

Market musings: Take profits or hold? Ok, we've had a pretty spectacular week, and some of the more experienced traders here are warning about the inevitable correction. As I mentioned yesterday, I had taken a trading course a number of years ago. I still remember a few things from those days, and the thing which most impressed me was that Wyckoff functioned in the days of "full service" brokers. This meant you got good research, but you also paid 7% commissions, 3 1/2 in, 3 1/2 out. So... these guys had to make 7% just to clear commissions. They didn't do day trading, they invested for the long haul (or shorted). It also meant they had to be sharp to make money consistently. They were careful about their entries and exits. He also pounded the table on the 10% loss rule. This has given me a bias to invest rather than trade. Examining the current state of the markets in "real things", I think Wyckoff would have identified the current environment as one of gradual technical improvement after a long decline and consolidation period. He identified a particular environment when stocks would "bob up on light volume" to identify when the selling pressure had abated and enough buying has started trickling in to get things going. This is the initial stage of a bull market. Certainly, volumes on may of the gold juniors are still anemic, but there is very little resistance to movement. Now things have gotten a little frothy today, but I think both strategies are finally good. Take some profits today, or ride out the correction for the long haul. Just my opinion. CD