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STOCKTALK

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

To: Shinin' Times who wrote (3381)	2/8/1998 3:11:00 PM
From: TechTrader42	Read Replies (1) \| Respond to of 11149

Fred: Thanks for seeking to make the scan discussions more practical, for reminding us that we're in this game to make a profit. But I have a few questions: Why trade only in stocks with "relatively low price"? Oftentimes, the higher priced stocks perform better over the short term and long term, and aren't as risky. Yes, you can have spectacular percentage gains in low-caps in a short time, but you can have spectacular losses, too. Why not consider stocks at any price? Secondly, why should the breakout occur at a "low ebb" in the chart history? Stocks at new highs often move up to newer highs. Sometimes it's true that the strong get stronger, and the weak get weaker. And thirdly, why must every scan posted here be nothing less than profitable, and tied to a trading strategy? This is a place where we can also learn from others about how to create scans, how to formulate different ideas. A profit is the final goal in TA for all of us, yes, but there is much to be discussed along the way. Brooke

To: Shinin' Times who wrote (3381)	2/10/1998 4:48:00 AM
From: Ken S.	Read Replies (1) \| Respond to of 11149

My friend Gary and I have been both using SI and have reached a similar point. We are new to TA ( ~ 4 mo's) and have been testing and using a lot of scans. I have tested Andy's favorite StochRSI(8,5) vs several systems using synthetic data with WOW and found it significantly better than many systems. In fact, in some synthetic tests, many touted systems are losers. If a successful trading system is found, you still have some stock selection to do to narrow the choice. We are having difficulty narrowing the choices to be profitable. One way we currently are exploring is using the IBD 99 RS list as a "fundamental" starting point to better selection. We are also looking up on the profiles for what other analysts are saying. That is looking for strong buys (>1.5). Any suggestions or comments on separating the good screens from the bad screens and refinement of stock selection after scans would be valuable.