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

To: Ming Z Chen who wrote (4883)	1/18/1998 3:24:00 PM
From: Chris	Read Replies (1) \| Respond to of 42787

[my plan] since i have a lot of request to do, i plan to do this: 1) post up a chart denoting the use of simple Ma's 2) Draw trendlines and support/resistance 3) explain what i would do and perhaps discuss some strategies for the particular stock couple of things for the reader: 1) im not an expert and i will be wrong.. (my disclaimer) <g> 2) ta is not 100% perfect esp. when news/earnings. 3) my purpose of doing charts is for YOU to start learning and see for youself. i can give you resistance points, but can YOU spot themselves? it's not good relying on other person's opinoin because that will ruin your objectivity already. 4) I would rather concentrate on the big name stocks, since those are probably in my database (saves me time) 5) I would also prefer to concentrate on "following" a particular and track it's movements. the thread wont learn anything if we analyze a stock for one day and that's the last we hear about it. one good case study was RADAF where we tracked it day by day for 2-3 weeks. that experience gained right there was 100x better than analyzing 50 stocks as a brief post.. 6) my time is limited, so i encourage everyone to participate and to help me. this is NOT my thread.. it's OUR thread. the time you spend exchanging ideas, the more we/you will learn... 7) mistakes are good, as long as you learn from them. I've made plenty.. i'll be posting charts tomorrow when i have access to my metastock. i'll be sure to get to every request.. i do believe that this week will be crucial for the mkt to see if we take out the 50 mas'.. Donald sew's post was a good one, in that LOWER highs is NOT good.. that signifies downtrend.. the current rally must match the previous high (please see donald's levels) for it to break the downtrend. and to do that, it must break the 50 ma's... so, in way, we are saying the same thing.. 50 ma must be broken.. downward trendlinese must be broken as well.. gotta go to lunch.. complete analysis/replies to request tomorrow. Chris

To: Ming Z Chen who wrote (4883)	1/18/1998 3:36:00 PM
From: Chris	Read Replies (1) \| Respond to of 42787

in case anyone missed it: charts: coolhistory.com briefing.com briefing.com articles: thestreet.com

To: Ming Z Chen who wrote (4883)	1/19/1998 4:18:00 PM
From: Chris	Respond to of 42787

[thoughts on entry points] as a continuing thought on sell stops... now do you see why your entry point is so crucial? you can't just buy anytime/anywhere.. some things to consider when buying.. 1) how many shares.. risk/money management.. i restrict myself to 5-10% of my total capital on one trade. What about a 2-step buy plan? put a small trade at initial rally pt to "test" if this rally is real.. once this rally is confirmed, add more shares? 2) what kind of method? buy limit? buy stop (breakout play)? mkt order? 3) got a complete trade plan? before buying i usually have: a) emergency sell plan - what to do if price movees against you. where is your exit point b) assuming XYZ goes up, where is your next resistance? what signals to look for to tell you to get out? 4) entry point is important because: a) using the mental/hard sell stop idea, you usually have those sell stops BELOW crucial support.. that means, your entry SHOULD be NEAR those supports.. those supports will be your trigger points. e.g. if you buy a stock at 45 and you're next support is $40.. you bought too high.. you're exposed naked in the freezing snow <g> b) another reason why entry point is important is because when the stock finishes it's rally... you won't be able to catch the peak/top.. you will always lose some % from the peak... (e.g. 2%).. thus, if your entry point is way up high, your returns will be lower and if it's really high, you might end up having a loss... ========================== which brings about this rule: NEVER CHASE A STOCK.. once it takes off.. either wait for a pullback or find another pick.. of 8000 stocks, im sure yours is not the only one rallying.. pullbacks can be nasty at times... thus your entry point is crucial.. hope it helps.. Chris Chang

To: Ming Z Chen who wrote (4883)	1/19/1998 4:22:00 PM
From: Chris	Read Replies (2) \| Respond to of 42787

i think trading using TA is really: 50% TA 25% emotions 25% planning/strategies =========== someone can give you the signals on buy or sell, but there is also the emotions and planning side.. only experience and trial n' error can help you learn those aspects.. very long yet rewarding experience..

To: Ming Z Chen who wrote (4883)	1/20/1998 2:36:00 AM
From: Chris	Respond to of 42787

here is an email i wrote a while back: thought i share it with you all. ======================================== Couple things i want to emphasis 1) Long -term investors can use TA.. who said TA is ONLY FOR TRADERS? 2) I've begun to think philosophically.. so bear with me.. I, myself, and im sure we've read other's post: a) Trust your own indicators b) listen to your signals now, coming from a beginner's point of view. I'm sure that person would be lost.. "what indicators?" "which one?" "i dont even trust my own system!" "my emotions are taking over my decision making" these questions and thoughts are VERY COMMON and TAKE SO MUCH TIME to resolve. At times, the advanced TAers will proceed "backwards" and take maybe 3 steps back.. Back to the drawing board and the process begins again... From my personal experiences: I can classify learning TA into phases. Each phase will take MANY HOURS and constant chart-looking and possibly countless times of frustration and $$ lost possibly.. 1) what is TA? how can TA help me? 2) ok, let's read some books to learn the basics 3) yippe, i got my first charting software.. now, how do i use it? <g> 4) lets start charting these indicators i've learned from reading 5) let's add more indicators as part of a system 6) now that i know what these indicators do, how can i apply to my time frame and apply it to my liking. (very hard step).. countless trial n' error... why? Indicator A must have the same time frame as Indicator B. Indicator A and Indicator B must/should give "different information".. (you don't want 5 diffeernt momentum indicators) 7) now that i have 20 indicators, can i make a system? 8) you can't make a system with 20 indicators. so you simplify.. you can't cut 20 indicators to 5 that fast.. it takes time. 8a) develop a scanning critieria. 9) all this time, you are also constantly looking on SI for new ideas. along with the above TA-issues, a beginner has MANY other issues to contend with: 1) small caps? large caps? use of FA? 2) should i use sell stops? buy stops? 3) Human trading skills. am i too emotional? what kind of risks am i going to take? Am i fit for trading? or am i more long-term? =================================================== While all of this is going on.. it takes TIME to familarize with yourself with your system.. it takes time to see the strengths and weakenesses of your system.. Please, dont feel i'm "at the end of the road" yet.. not at all.. here are some future items left to be done: 1) develop a good scanning method 2) familiarize further with my new system (still new to me) 3) money management.. I will try to shy away from sell-stops.. thus, risk and money management will be my next goal.. very vague concept and not familiar with it too much 4) be more patient.. 5) be more confident. and not being reckless. sometimes i would go into a trade without a SOLID buy signal. why would i do that? duh... 6) look longer term if possible. more $$$ and much easier to look at things longer term.. thus my reliance on weekly charts... 7) find a better "overbought/oversold" indicator. i'm still looking for a better one than the stochrsi triplets.. =================================================================== Anyways, I think with investing.. the more time you put into it... the more $$$ potential... the lesser risk.. the more better your TA will be.. right now, im still "learning" my system and have yet feel that 100% confident to trade with it. but i've seen the potential effectiveness in giving good succesfful buy signals. As you can see, when I "learn" a system, i drop everything concerncing trading and do sample "paper trades". meaning, i would go through a chart and follow my signals and see if they worked well or not..

To: Ming Z Chen who wrote (4883)	1/20/1998 2:44:00 AM
From: Chris	Read Replies (1) \| Respond to of 42787

ming (QMDC) my indidcators are on sell mode right now.. it was sell mode since 1/7/98... currently QMDC is BELOW my automatic sell of 50 ma.. (one of my rules) since, you are still holding.. let's do some damage control... i see support at 22. and it's pretty strong.. QMDC might be strong enough to hold above 22... however, if it CLOSES below 22, then i would get out quickly, since the next support is at 17.. my weekly charts gave me sell signal since 12/5/97.. if you notice we are at the same level vs 1 month ago.. so in theory, the weekly chart was correct in giving you a sell signal then (note: weekly charts try to give you signals on BIG moves)... in that one month, money in QMDC could have been in another rallying stock.. hope it helps.. Chris