Registered User
Joined: 1/5/2005
Posts: 14
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BIGBLOCK, I have to admit that it seems as if you know this game pretty good. Your prediction or forcast (whatever you want to call it)was on the money when you adviced me on MCZ saying that a better entry would be around $1.48. I read most of your comments and I notice that you emphasis alot on price and volume as if those are the two things you look at to determine which way a stock is going to move. I'm sure you look at other indicators as well but your main tools are price and volume. Would you mind elaborating a bit on this? I'm having a bit of a hard time finding good entry points and to be frank, it's getting a little expensive if you know what I mean. Hope to hear from you!!!!!!
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Registered User
Joined: 10/7/2004
Posts: 2,126
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Armany reading price and volume (reading the reaction of the crowd) is not as simple as it may sound originally, althought it simplifies things at the end if you master it. It will take longer than most other indicators (or systems), but it is worth the hard work.
Along with volume and price I also use channels and support-resistant. There is no complex formulas or indicators. On ocassions I look for divergences in MO (leading indicators).
Also it is very important to become acquainted with whatever stock you decide to trade or invest. You must learn to get in synch with the way that stock moves - and that will help you with entry and exit points.
Once you are in sync with the equity you can use channels as well as support and resistant in conjunction with volume (I cannot tell you how to do it, it takes experience)
Now there is not single technique or fixed system with take the tools that I use and give you always the same result. I wouldn't use it if I found it. The market changes constantly and so does the way I use and read the reactions of the crowd.
My system uses human input, as well as fundamentals, and some technicals.
Getting a sense for the direction of the stock will help you too (uptrend, downtrend, or trading range or consolidation).
In the case of MCZ I could had given you the entry point by just looking at the price and the wave it had been moving in for the last 3 months, 3 weeks, or 3 days. I call it the synchronicity of price. It comes from the well know Dow theory - basically higher highs, higher lows and vice versa.
Anyways I could be here for days telling you about this or that. It probably will make no difference because what works for me may not work for you. You must choose your course of study, try things for yourself,investigate the markets, explore, and learn, and then your personality will dictate what works for you. Your losses are the cost of tuition here and you must learn from your mistakes or you will get nowhere in this business. Remember not everyone is made of what it takes to be a trader. This game is a game of reality, there are no second chances as it is with real life. If you have what it takes I am sure that you will find your way.
Good luck in your journey.
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Registered User
Joined: 12/1/2004
Posts: 34
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Bigblock, thanks for continuing to post on this site. I am new to trading, less than a year, and your postings have helped me to lower the cost of "tuition" in this endeavor. Keep up the postings, many of us are reading them and learning.
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