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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Richard Estes who wrote (9269)	2/13/1999 8:16:00 AM
From: Dick Brown	Read Replies (2) \| Respond to of 12039

Re: Elders book.. I can't think of a better introduction to the game some people think they want to play.. If about futures or stocks.. it is still about supply/demand. Agree it is thin on TA but opens the mind to approaches.. Agree 100% on earlier note that it is where you sell that counts..Can't agree on chart reading tho I still look for higher lows and higher highs and use the last day or two's low as my exit if I guessed wrong when going long..My trading is far from ideal but looking at last year I had about 3/2 ratio of winners to loosers..My problem is, and it does need attention, is I sell too soon..in other words the winning ratio I have isn't providing me with the % to the bottom line. I'm not afraid of revealing my faults.. Dick.

To: Richard Estes who wrote (9269)	2/13/1999 3:14:00 PM
From: Stuart T	Respond to of 12039

While I do use TA to get me out of a trade if it doesn't hit the target or doesn't look like it will hit it (kind of subjective), I use upside and downside targets to decide whether I should even initially get into the trade or not. Generally, I calculate the percentage difference between the current price and my target price and divide that by the percentage difference between the current price and the support level. I like to see a positive ratio of at least 2.5 to 3.0. It's really a reward/risk ratio. Entry indicators depend on the stock. I do use some of the more common indicators for confirmation. I have been using MSWIN's system tester to determine the primary indicator for a stock, after reviewing the trading pattern to determine if one or two trades skewed the results. Since I can't watch the moves all day and since Stockedge doesn't have all the indicators that MSWIN has even when I check while at work, I probably need to leave things alone during the day and rely on my after-hours review to make decisions. Kind of hard to leave the children ($) alone during the day and not try to protect them when I'm at work. :)