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

To: Don Maher who wrote (8334)	6/3/1998 11:47:00 AM
From: David R. Evans	Read Replies (1) \| Respond to of 12039

Hello Don, I'm using MSWIN (MetaStock for Windows) so I can have many indicators up at the same time. When I say MACD's leading into each other I'm talking about the following: MACD (8-17-9) gives me a buy. MACD (13-26-9) is ALMOST ready. MACD (13-34-89) not ready yet. Now I get into the stock based on the short term MACD and other indicators I follow. After a week or so my MACD (8-17-9) gives me a sell. I now look at my other MACD's to see what they are saying. They look as follows: MACD (13-26-9) LONG but close to a sell. MACD (13-34-89) LONG. I now have an option to either stay short term and follow my MACD (8-17-9) OR go longer term and follow the other two MACD's. Now, let's say I followed the longer term MACD's and it's four weeks later. Now my MACD (13-34-89) is saying sell so I get out. The question you must answer is this...... Was it worth staying in the stock for the extra 4 weeks or should you have sold when the shorter term MACD told you too? How do you know????? Well, first of all you can look at the price you got when you sold the stock and compare it to the price you could have had four weeks ago. The second way, and the most important way in my opinion is by monitoring the way you felt the last four weeks you held the stock... If you were comfortable holding the stock for that long then maybe that's the way you should trade BUT, if you were looking for ways to sell every day and felt like you were missing out on other opportunities even though your stock was going up then you need to trade short term..... Trading is a MIND GAME... Almost any system will work if it is followed the right way. The trick is to follow it... The only way you will follow a system is if the system is built for YOU... Your personality will determine the type of system you need. You will know if it's the right system if you are making money AND you are happy doing it...... Dave Evans