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

To: tide who wrote (2171)	10/29/1998 8:27:00 PM
From: Mike Learner	Read Replies (1) \| Respond to of 39683

There you go: Thomas Carr is the creator and an active participant at the Befriend the Trend Trading thread here on SI. Thomas provides the following commentary about what goes on there and what the thread is all about. Below is his write up. "I had been trading stocks for about 5 years on a part-time basis before I worked out the "Befriend the Trend Trading System." I am a professor at a small college, and so generally have an hour or two each day between classes, and lots of time in the summer to trade. But my efforts generally did not produce much over what I was getting in my mutual funds. I mostly traded on news, earnings reports, splits, and tips from friends. I had a few big gainers. But mostly my returns were mediocre, or I simply lost money. That's when I decided to focus not on fundamental analysis (takes way too much time) but on technical analysis instead. I read a couple of books, broused several web pages, and did lots of backtesting. That's when I settled on the following formula: -I would trade only a select number of big cap stocks that I knew very well, and which had lots of institutional support. -I would focus during market uptrends only on those among my list that were also showing good strength over the long, mid and short-term. -And I would focus during market corrections only on those among my list that were also showing weakness. -Finally, I would look for stocks that had paused in their trends, and jump in once the trend resumes again. I use the Stochastics indicator to determine entries and exits, as well as chart formations. I paper-traded the system for about 3 months before I felt confident enough to trade it with real money. But once I did, I decided that I didn't want to trade alone, so I started the thread. When it first got going, most of the posts were from me to myself. I carried on a kind of conversation with myself on my own trading decisions, in the hope that others might join in. Soon others did join us, and now we have quite a few regular posters. We have been off and on the "hot subjects" list several times. Generally the regular posters on the thread share stocks they are thinking of trading, with links to charts. And the rest of us comment on them. I usually give a weekly list of suggested trades, with target prices. And I always declare what I am trading, and my results. I had been up over 40% in about 20 weeks of trading, but that has slipped some during this market volatility. It's a great thread, with lots of support and advice. I am very glad it has developed the way it has." Mike Learner