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.
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The best traders react to
Are you short?
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.