Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: MIKFREE who wrote (22907)	1/25/1999 11:49:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

MIKFREE--- This is a private message I had posted in response to the fundamentals, I for one follow here, others on the thread have different strategies. I hope that you may find it of some help.I have added some pertinent portions to the original post.. Sunday, Jan 24 1999 11:57PM ET Thanks for your posts.. Markets according to what I know are not isolated charts, markets movements are sum total of inter-related movements of indexes which tend to gain or loose importance with change of macro-economic fundamentals and investor sentiments. I relate the global indexes and macro moves and try to evaluate their impact on US markets in first step, second I highlight the potential of move in indexes which are in. So first step is to see what is happening globally second to interpolate this on 'domestic' indexes and try to find the best trade. I look at over bought indexes as targets of buying puts and oversold indexes as targets of selling puts or buying calls, rather this is the most tricky part of the trade as when you make a call opposite to what charts are showing more often than not you will find majority taking a different view.. I don't, for me certain supports within parameters of continuing macro economic fundamentals will hold.. That is the crux of my trading style, simple but I have found it to be very effective.. Like at SOX 190 I was seller of puts and buyer of long calls nobody wanted to have to do anything with SOX, at those levels. On internets I was chipping in some trades, but was following the move up and had placed my nest of puts for a fall on DOT.X once I saw 50% fall on AMZN and Yahoo , I moved in to capitalize by selling the puts and buying the calls a highly risky strategy. However, the whole investment approach is based on capitalizing on the fear and greed of the market. Making a opposite trade... Does it mean opposite trade will always work -- no in market moving higher people tend to play short, whereas in market moving lower people try to pick bottom's for me my support points are points where I will decide my strategy. If they are taken out I am short if they are held I am long.. I have always highlighted my points on this thread.. I hope you will try to discipline your trading and try to interrelate your macro trading approach to what is happening around you globally.. That is how you become a sensitive trader ... better trader or good trader. I think is a difficult hurdle we all keep trying but our mistakes always make us feel that market is bigger than us.. A very thin line defines failure in the market or success it is the line of not being overcome by fear and cashing out at worst possible time.. A good trader has supports at least four points below the market and resistance's minimum of three points above, a good trader waits for 45 minutes minimum before jumping on the bandwagon.. 90 out of 100 times the pits will break a support to take the index lower just to bring it back known as 'running the stops'.. Tons of bandwidth has been wasted on keeping tight stops, people are stopped out at worst possible turning points. For me the best way to go about is know your sectors well, work on your indexes, learn your support and resistance point and learn the market points by heart.. You should have no need of looking at a chart within a phase of the market.. Like a phase is 1228 to 1255. One should know where are the sensitive points and if you know your stuff well, you will have most of your trades a winning trades.. In a trending market never go against the trend wait on the side lines, opportunity shall appear and you should be ready to capitalize.. Markets are difficult if the purpose of a trader is to have ‘hi bi good bye' approach, like another business it requires absolute seriousness and the market has its sensitivities a collective super sense, a good trader never challenges the market wisdom and super ego.. If you want to see some who did, go to lot of good places on SI to see the super ego's trying to mould the market the way they want to see it.. You will find no shortages of these super ego's humbled over number of years, but my salutations to them they live for another day albeit with trades which exist in figment of minds.. For trading seriously check out with ‘Last Shawdow's thread and Jenna's gems is a great work also, if you want to trade futures go to ‘ System strategies', however don't forget to visit Jame's Strauss 13 days MA thread.