5. Don't buy up into a major moving average or sell down into one. I don't really understand the reasoning behind this...I hadn't really looked at the moving averages before, but in looking back many of the buys I put in were below the moving averages...but isn't this saying the opposite?Jean
the reasoning is a major MA like say 50dma is either resistance or support. so if you buy up into a moving avg u putting yourself up against resistance , better to wait till the other side where less congestion. likewise with sell if 50dma breaks you are on the other side of the support it provides.
Jean,Hey, at least put that into context <g>:1. Forget the news, remember the chart. You're not smart enough to know how news will affect price. The chart already knows the news is coming. 2. Buy the first pullback from a new high. Sell the first pullback from a new low. There's always a crowd that missed the first boat. 3. Buy at support, sell at resistance. Everyone sees the same thing and they're all just waiting to jump in the pool. 4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover. 5. Don't buy up into a major moving average or sell down into one. See #3. 6. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble. 7. Exhaustion gaps get filled. Breakaway and continuation gaps don't. The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can. 8. Trends test the point of last support/resistance. Enter here even if it hurts. 9. Trade with the TICK not against it. Don't be a hero. Go with the money flow. 10. If you have to look, it isn't there. Forget your college degree and trust your instincts. 11. Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try. 12. The trend is your friend in the last hour. As volume cranks up at 3:00pm don't expect anyone to change the channel. 13. Avoid the open. They see YOU coming sucker 14. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom. 15. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it. 16. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again. 17. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action. 18. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers. 19. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight. 20. Beat the crowd in and out the door. You have to take their money before they take yours, period.
Hey Alan, thanks...Hey, at least put that into context!But I hadn't gotten that far! I'm working on understanding one at a time.Maybe it's the some of the stocks I'm trading, which are lower volume and the not as good for charting..Like AMK. Everytime I've bought it, around 9.5-9.7 it was below the MA's....maybe I need new ma'sJean
Jean,<Like AMK. Everytime I've bought it, around 9.5-9.7 it was below the MA's....maybe I need new ma's>MAs become useless in dead, flatline markets like AMK. But see that 200-day sitting above> If price rallies into it, than pay attention to #5.Also if you're real short-term, you can drop down to a 60-minute on that chart and maybe find some worthwhile swings using the averages.Alan
MAs become useless in dead, flatline markets like AMK. But see that 200-day sitting above> If price rallies into it, than pay attention to #5.That makes sense! Alot of my stocks are pretty flat. But buying AMK around 9.5 and selling around 10.25 is pretty good for me. Cal's been doing it...I just stole it from him...after about the 3rd time he did it and I could finally "see" it. One thing we really stress here is.... do you own DD!!!! Had customers so took awhile to get backJean
Geezzz...nothing like having your "teacher" looking over you shoulder! LOLIn case your wondering my question came from herehttp://www.hardrightedge.com/wheel/tcrules1.htmJust trying to understand each of the points.Jean
One more thing, Alan, You shoulda posted the link....not the whole thing....then maybe they'll look around for more stuff. You really aren't a business person are ya!...you're words if I remember right not mine!Then they may have found stuff like"http://www.hardrightedge.com/wheel/beginners.htmI really liked that one!Jean
Jean,If I did that, someone, somewhere would complain about self-promotion.Alan
One more thing, Alan, You shoulda posted the link....not the whole thing....then maybe they'll look around for more stuff. You really aren't a business person are ya!...you're words if I remember right not mine!Then they may have found stuff like"http://www.hardrightedge.com/wheel/beginners.htmI really liked that one!Jean Alan has a great site. There is tons of useful information. Just keep clicking away on all the links. It'll take you 6 months to read through all the information hehe.Eric
If I did that, someone, somewhere would complain about self-promotion.Alan Naw.... that won't happen HERE from any of the regulars. No green-eyed whiners at the STT Board. Post what you want. Everyone's already getting the book anyways, so what else is left to *promote*? ~Smile~~j
If I did that, someone, somewhere would complain about self-promotion.Yeah, I guess you're right! :( Someone somewhere is always complaining!Jean
Yeah, I guess you're right! :( Someone somewhere is always complaining!Jean Yes, but Jean... i dont think it is right to bow to that kind of negativity. If alan has something he wants to use as an example... let him post it. and if it *promotes* something... well, who cares? No one is forced to do anything against their will from a MESSAGE BOARD. So I dont think that other pple's whining should have any say in what he chooses as content. There are some boards that are probably concerned by some moot point of *promoting*... but then, so what? Alan doesnt have to post that stuff there. We WANT to learn what he has to offer... not discourage it on some kind of fuzzy *principle*.jmo ~j(ps... plus, it would be kinda fun to maddog any whiners, anyways, dont you think? hehe)
... i dont think it is right to bow to that kind of negativity. By golly, you're right! I didn't mean to imply he shouldn't, but agreeing that someone would complain! I should have given credit where it was due in the first place...right off his site.We WANT to learn what he has to offerAnd anyone else that happens by! Even if it is to learn by NOT following what they say! LOL(ps... plus, it would be kinda fun to maddog any whiners, anyways, dont you think? hehe) Sometimes, Julie, you are devious! LOL Sometimes ignoring them is better! :)Jean
LOL Sometimes ignoring them is better! :)Ok, Jean: you ignore them. I'll maddog them, okay? heheIgnoring the ridiculous is very polite. Maddoging is just a different approach ;-)
"(ps... plus, it would be kinda fun to maddog any whiners, anyways, dont you think? hehe)"Ats my girl.......:0)
MAs become useless in dead, flatline markets like AMK. But see that 200-day sitting above> If price rallies into it, than pay attention to #5.Excellent point Alan and one of the reasons I like the low volume stocks. It's easier for me to see the rallies and the selloffs. That's just me though and it comes after a lot of watching.BTW, thanks for taking the time to post that long list. It was one of the best posts I've seen in awhile and if I could rec it a dozen times I certainly would.
Alan,If I did that, someone, somewhere would complain about self-promotion.If you were on a regular Fool forum, they could say it was self-promotion and attempt to do something about it. Thankfully this is NOT a regular Fool forum and you can post as many links as you like. In fact, PLEASE post them as it helps all of us learn more about what we are doing and if we become successful traders by it, not only have we benefited from your experience but you have benefited from helping the rest of us do well. I find the most rewarding things in life usually have to do with helping others.
<PLEASE post them as it helps all of us learn more about what we are doing>Well in that case, my wife and kids both thank you <g>.Alan
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