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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: David R. Evans who wrote (7618)	1/7/1998 9:26:00 AM
From: CynicalTruth	Read Replies (1) \| Respond to of 12039

Dave... "That brings up a point I want to make. When you are looking to buy stocks PLEASE do not fall in love with them." Words of wisdom. All beginning TA'ers should write that down and tape it to their monitors. Never, never, never get emotionally tied to a stock. Avoid the stock threads here on SI, most who post are in love with their stocks... even if they are crashing at a rate of 3 or 4 $$ per day. They keep saying it is a "panic spike bottom" or some other fancy denial phrase. It will go back up tomorrow!!! Tomorrow comes and the stock gaps down at open another $3...... what you gonna do??? Learn and rely on your TA and avoid the "Noid"... sell the loss before it gets bigger than 10%... And don't forget to take the profit!!! J”hn

To: David R. Evans who wrote (7618)	1/7/1998 12:10:00 PM
From: shasta23	Read Replies (1) \| Respond to of 12039

Hi Dave, just for purpose of clarification: i wanted to know if you would consider the use of stops as a sole exit strategy a valid method or do you think you need to have something like stochrsi(14) crosses under 70 or 5ema under 13ema etc. to call it "a system". I like the simplicity of the stop approach but also notice that this way i program myself to give back 6-10% each time in the end which might be a lot. Of course other system exits can't get you consistently out at the top but i have to study more to see if they give back less than 5-10%. Any experience about this? Another question came up through a friend of mine. He used the Stochrsi(14) cross through 30 as trigger and the trade didn't work out because (my guess that was the reason) he was "on the wrong side of the mountain". He noticed afterwards that when he bought the Stochrsi(8,5) was already at 70 but still rising. He thought this to be not such a good sign. I see this pattern quiet often the last days and You described this in the IBM post still as OK but i wanted to clarify this point again for learning purposes.... Thanks DAve for all the help! Stefan