What Now??!!

The eternal question, "Was that the bottom?". Well I'm not sure. Personally I think it was a short term bottom and that we are in a short term rally. What I really think is that if you are a trader, which is what this column is about, then it doesn't really matter if it's a bottom. You will continue to game the market based on the moves of specific stocks both up and down. Yes you can make money long and short just like everybody says but you can also make money only trading the long side even in a down market. I know you can't believe I just said that but it's true. If you are uncomfortable shorting stocks, don't do it. You can still pick up long side money off intraday oscillations. Read my article from a few weeks back about playing leadups. these work great for picking up a little in most market directions. You can also screen for stocks that have a history of moving up and down in a range daily. Learn the intricacies of that stock and use it. If it trades in a range work the range. Keep your stops tight and don't get greedy. If you work in a disciplined trading manner you can still nail the long side, albeit for smaller profits.Hey smaller profits are better than no profits and infinitely better than losses.

Over the years I have moved to this being my main style of trading. It probably keeps me from some of the huge moves we see, but overall it kepps me in the game and I believe it gives me more profit overall because I can be in the game almost everyday. Learn the cahrts, particularly the tick charts. Tick charts will help you notice consistent move in a stock. Learn to spot them and you can add that to your weaponry.When you spot that defining moment in a chart it's a killer. You see the same spikes, you see the same drops etc. Learn them and nail them. I'm not saying it's easy but it's not rocket science. You watch a good linebacker read a play as it unfolds. If he's really good he knows intimately the offense of every team he plays and he knows how they move. this is no different from what we do, it just doesn't cause many broken bones. When you see that play unfolding you can make it work. Wow I told my mom all those hours I spent on the football field would payoff someday.

Go To Page: 1 2

Articles in this Topic    Discussions in this Topic