| jjl1753 |
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Gold User, Member, Platinum User, TeleChart
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| Registered User |
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| Unsure |
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| Thursday, October 20, 2005 |
| Thursday, June 5, 2008 10:09:29 AM |
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I'm a relatively new trader and user of telecharts; in reading Street Smart Chart Reading - Volume I page 22 last paragraph Don Worden says:
"Will I set a calamity "stop loss" point below the market, in case there is no rally? No. Eventually there will be a rally. If I get slaughtered waiting for it, so be it. When I sell, it will be into strenght, not weakness."
I find this statement disturbing, considering what is happened to many stocks (specially tech stocks - Cisco, Agilent, Oracle, etc.) These stocks tanked in the 2000-2001 market drop and have never returned to their prior value. At time my saving grace was to sell everything - I still lost about 30% of my portfolio value. If I had waited to sell into strenght I would have lost almost everything.
I think the concept of selling into strenght is great, just like buying into weakness, it's a great contrarian technique that minimizes slippage during swing trading, but risking loosing everything and getting "slaughtered" on the principle of selling into strenght I don't think is very prudent.
Please let me know if I misunderstood Mr. Worden's statement. I intent to give my wife (a new trader) this book for her to start learning about the market, but I do not want her to make the horrific mistakes that I have made in the past.
Thank you for your help and comments.
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Can you please email me the link to (email removed by moderator)
I've tried to find CANSLIM and TeleChart links to no avail.
Thanks
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