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Strategies & Market Trends : TA-Quotes Plus -- Ignore unavailable to you. Want to Upgrade?

To: John K who wrote (3220)	1/26/1998 2:30:00 PM
From: Richard Estes	Respond to of 11149

"I saw many posts on the webb by people complaining about failed breakouts and their systems not working last year" A breakout system identified a breakout, most systems don't predict how far a stock goes. Did the system fail or the stock selection? There will be losses with any system. If someone feels that the way to trade the market is to jump on breakouts then a system that identifies those breakouts is a good system. If they select stocks that fail then they should have a low loss means of exiting the trade. What is a sucessful trade? someone may be happy with a 1/2 point, others want 20%,100%,etc. In summary, a good system is one that accurately measures a logical interaction between indicator(s) and price/volume. The indicator(s) are choosen by the trader based on his perception of the measure. A good system can not make a silk purse out of a sow's ear, so stock selection is always a player. We will always lose sometimes, the good system would cut the losses and have fewer than other means.