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Registered User
Joined: 1/1/2007
Posts: 49
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Morning Guys,
I need a littlt TLC and advice. Is it just me or is there somthing goin on. It seems like everything I touch goes south the minute I like it. All my indicators look fine & I weigh in then it goes down.
Is this the soty of market we are in at the moment. Not really looking for tips justwondering if it's just me.
Stratone
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Registered User
Joined: 2/5/2006
Posts: 1,148
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post some charts. what are u buying?
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Registered User
Joined: 10/26/2005
Posts: 238
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You have to adjust your trading style to the market conditions or set on the sidelines till they improve. A system that worked will Bull market will not work in a Bear. Above all guard your Cash. Step back and review your system for a common error. Try looking on the weekly and monthly charts of your losing trades did they look good there? IE: monthly down , weekly down, daily up so you go long! You would be fighting the long term trend. AB
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Registered User
Joined: 4/18/2005
Posts: 4,090
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I've gone through periods like that in a bull market.. turns out the market was shifting. Those shifts aren't alwayse clear by looking at the indexes, and they aren't rapid.
Sidewayse markets are the worst about that. It's almost like you need to invert your buying strategies. the thing is in a weak market there is generaly little follow through. I've been pretty sucessful recently buying in a falling markets BUT this recent bounce has been brewing for a while.
markets change and you need to be aware of that unless your system or strategy takes it inot account and asume that you can't pick a reversal so must take your signals when they come... many longer frame trend following/breakout systems works like this.. but they generate a high number of whipsaws.
If you are going to buy in this market enviroment I'd suggest a short term hold.. for now at least. Longer holds may find them selves going back to losses.
But with out see what you are buying and why and when it's hard to say.
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Registered User
Joined: 1/1/2007
Posts: 49
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[
Thank You, you make perfect sense. It just seems like my picks are gaining a bit then dumping and stopping me out then a lot of times going right back up. With my funds I can only buy enough shares of stocks under 5.00, I'm sure this has some to do with it too.
Stratone
Thank you again for the advice.
QUOTE=scottnlena]I've gone through periods like that in a bull market.. turns out the market was shifting. Those shifts aren't alwayse clear by looking at the indexes, and they aren't rapid.
Sidewayse markets are the worst about that. It's almost like you need to invert your buying strategies. the thing is in a weak market there is generaly little follow through. I've been pretty sucessful recently buying in a falling markets BUT this recent bounce has been brewing for a while.
markets change and you need to be aware of that unless your system or strategy takes it inot account and asume that you can't pick a reversal so must take your signals when they come... many longer frame trend following/breakout systems works like this.. but they generate a high number of whipsaws.
If you are going to buy in this market enviroment I'd suggest a short term hold.. for now at least. Longer holds may find them selves going back to losses.
But with out see what you are buying and why and when it's hard to say.[/QUOTE]
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Registered User
Joined: 6/6/2005
Posts: 1,157
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stratone,
I am not sure what you mean when you say that you only have enough funds to buys stocks that trade for less than $5. You gain on a percentage basis in the market. $5,000 of a $5 stock costs the same as $5,000 worth of a $100 stock. A 5% gain in either stock equals a 5% move and would represet a $250 gain. One would come from owning 500 shares the other from owning 50. Some say that it is easier for a $5 stock to move 5% than it is for a $100 stock to move 5%. I disagree. When you add in the volatity, the average daily range and the risk, sometimes I think it's easier for a $100 to move 5%...
David John Hall
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Registered User
Joined: 6/6/2005
Posts: 1,157
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My appologies...that is 1000 shares of a $5 stock not 500.
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