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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Readyman who wrote (11495)	4/19/1999 9:14:00 PM
From: HairBall	Respond to of 99985

Readyman: I do not know your position, but I will offer the following advise. Before you take any investment position have a game plan. Those plans should vary depending on your investment strategy. Intraday/Short-term Position Trades First: I identify a trade candidate (stock). After doing my own research, in addition to anything I might read on SI or anywhere else for that matter, if I decide it is worthy of a trade I do the following: A) Determine an entry point B) Determine a stop loss point C) Determine a profit point D) If my stop loss point is reached, I exit the trade ASAP E) If my profit point is reached I usually take the profit, but if I am convinced it will continue the run, I always trail a tight stop loss. And, if that stop loss is reached I exit the trade ASAP. I never average down on a trade. I will sometimes buy more or sell short more if the trade continues to run in my favor and I determine that the run will continue. I treat each additional buy or short sell as a new trade. I don't like to loose money. I would rather pay commissions. So, if you are in a trade or investment that has gone against you, I suggest if you have not already done so, set a stop loss now and stick to it. If the stock reverses you can always buy back in. The fear of getting out of a trade (after holding into a loss), just before the trade starts to recover is the single biggest reason traders/investors loose big! If a trade/investment goes against you bail at your stop loss. Then if the stock reverses, you can always buy back in at a little higher price after you reevaluate the trade again. Sure, you may leave a little on the table, but you will never loose big! Regards, LG Disclaimer: My posts are my opinions only and I reserve the right to be wrong on occasion. Do not base any investment decision solely on anyone's views or analysis. Do your own research and take responsibility for your own investment decisions.