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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Rashid Garuba who wrote (3116)	9/16/1998 9:44:00 PM
From: JACK R. SMITH JR.	Read Replies (1) \| Respond to of 59879

Rashid, I must comment here. You are a short term trader, so you take short term profits. Conventional wisdom says let your profits run, and cut your losses. It is good advice. If you are a daytrader, you take your profits day by day. There is much to be said for taking small or large daily profits. You are not in the market overnight, and good and bad things can happen there. First, look at longer term charts to get your direction, and then shorter term for your tactics. If you read Wizards, then you know that the people profiled are "consumed" by what they do, and most started and got their basis in the trading pits. They had the advantage of learning the hard way and those profiled are or were successful. I think that it is extremely hard for people like us who do not have the "pit" experience to understand how the markets work, but on the other hand, I think that it is extremely possible to make a good living off the floor with the technical tools that we have today. We can perhaps see more than the floor trader, but!! You fill in the blanks-- I do not wish to give the impression that I am any kind of expert or even a very successful trader. It is basic that you as a trader, know the basics. That is how will the market respond to news. If the dollar goes down, what happens to this or that. If interest rates go up or down, is that good or bad for this or that. I know that this sounds like kindergarten, but it is often overlooked by traders, and they get burned. I would like to know if you know of forums which discuss this sort of thing. I am interested in trading systems, technical analysis, in the extreme. I know that most here are. One other comment is that there are many systems, schemes and approaches that have worked well for individual traders. What is right for John might not work for Fred, etc. I know people who only work spreads and are successful, and others who trade this or that. Many successful traders concentrate on one or two markets and do well. Many fail who spread themselves too thin. I do not know if this helps at all, but good trading and good luck-- Jack!!

To: Rashid Garuba who wrote (3116)	9/16/1998 10:10:00 PM
From: TATRADER	Read Replies (1) \| Respond to of 59879

Rashid, be sure and read the chapter about volume, pages 271-277....My irritant with trailing stops is that when I set them at 3% below entry, the Market Maker many times seems to just come down for my shares, and then depart to higher ground...But I have to tell myself, I can survive a long time on 3% losses, but a big loss takes me out of the game for good...If we are patient we will find the grand slam stocks and ride them for all they are worth...But we must always trail them with trailing stops to guard our profits..... I am trying to analyze USWB today....It gapped at the open to 12 1/4, and then at 10:30 it was below the gap price...That is a technical signal to sell...But it muddled around the 12.00 level for sometime, took a quick hike to 11.75 and then moved back up above 12.00...Closed near 13.00 and will probably hit your 15 target within the next 2 days...What was it in the movement of that stock, that told the trader to sit tight?...I guess the stop should have been set 5% under yesterday's high at 12.06...That would have placed the stop at 11.45, and it would not have gotten triggered today...I am constantly analyzing stocks where great profits can be gained if disciplines are followed correctly....Regards, Mark