To: MMK who wrote (2962 ) 1/1/1999 7:49:00 PM From: TraderXx Read Replies (2) | Respond to
MMK...you bring up a good question about how one actually determines which stock has potential or not. I understand your frustration about your past experience in buying those stocks from the IBD that indicated to you that they were buys. But maybe where you went wrong was that to be able to filter out those which you had determined to be good potential stocks, you should have gone further and looked at technical charting to see where each stock's trend was developing. In other words, learn and understand how one determines potential stocks through technical analysis and it will give you a better indication of where the stock is going. I'm not saying that technical charting is 100% correct, but its just another indicator convincing you on whether this stock is going up or down. If you will look back at a number of well known traders ie. Larry Williams, etc., they will explain to you that technical charting is vital in helping you understand the movements of stocks, along with other indicators. If I could recommend to you a book on technical charting it would be "Intro to Technical Analysis" by Martin Pring. I think its an excellent beginning to understanding how it works and it comes with a CD-ROM to guide you through the book. Another book I would recommend is "The Electronic Day Trader" in helping you understand how MM's control the market . It really opens your eyes to how they control how prices go up and down.
