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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dale Wingo who wrote (430)	8/13/1998 2:33:00 PM
From: Dr. Stoxx	Respond to of 39683

Dale, I always enjoy repeated the bare bones of the system, for it helps to remind me of my own trading rules, and keeps me disciplined. As for staying with a trade, I prefer generally to sell when any of the 3 indicators are triggered. One of the factors that weighs in on this sort of trading is TIME. A 5% gain in 5 days beats a 20% gain in 5 weeks. As long as you are paying rock-bottom for commissions, it makes sense to bank quick profits frequently, than wait in the hope of larger gains. But then, this sort of trading is only for certain types of people. If you are anything like me, you are impatient, impulsive, and need immediate gratification. This system tames my impulsiveness with solid, objective parameters. And getting in and out quickly helps satisfy my need for continual feedback. I've got some long-term holds (mutual funds, bond funds, and a couple of stocks: IBM, COF) that I cost-average into. But with my "play money", which is not much, I like to trade short-term. As for trading back in after a sell, that must wait until another buy signal is triggered. Were I willing to short stocks, I could ride the wave back down. But I prefer to play long only, and so must wait. E.g.: I had a nice 15% gain on HD a few weeks back when it split, and have been waiting for it to signal a buy again. It recently did, but it did not look as good as other plays. Good luck, TC.