You keep talking about the market being over bought in so manny
updates so why put buys on the watch list. This gives a double
message and why I dont use the watch list IMHO.
The best traders react to the market, so while it's prudent to
be cautious, follow the trend and react when it changes because no
one has a crystal ball and knows exactly when the market will top
or bottom, so all you can do is note overbought and oversold
conditions and support/resistance and trade using disciple and good
risk/reward etc.
personally myself I like to give Longs more room when the market
is oversold a little bit or not so overbought, and give them less
room and day trade when the market feels a bit dangerous and
overbought. also I make exceptions if the pattern is really
awesome or the volume is exceptional.
Because those are the facts rm686. As I said very clearly
last night, overbought is NOT a reason to sell. We put trade
ideas out there because they are valid setups.
We will continue to play the valid setups if they trigger but we
must point out the fact that the risk/reward is declining as the
market grinds higher.
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watch list
Are you short?
Posted by RM686 on 17th of Mar 2010 at 10:48 am
You keep talking about the market being over bought in so manny updates so why put buys on the watch list. This gives a double message and why I dont use the watch list IMHO.
The best traders react to
Posted by matt on 17th of Mar 2010 at 10:54 am
The best traders react to the market, so while it's prudent to be cautious, follow the trend and react when it changes because no one has a crystal ball and knows exactly when the market will top or bottom, so all you can do is note overbought and oversold conditions and support/resistance and trade using disciple and good risk/reward etc.
personally myself I like to give Longs more room when the market is oversold a little bit or not so overbought, and give them less room and day trade when the market feels a bit dangerous and overbought. also I make exceptions if the pattern is really awesome or the volume is exceptional.
Because those are the facts
Posted by steve on 17th of Mar 2010 at 10:51 am
Because those are the facts rm686. As I said very clearly last night, overbought is NOT a reason to sell. We put trade ideas out there because they are valid setups.
We will continue to play the valid setups if they trigger but we must point out the fact that the risk/reward is declining as the market grinds higher.