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"In theory this is true. But if one is trading a stock long or short, one
usually sets a price target. Then closes out their position if it is
reached. So in practice shorting and going long should be no different in
terms of %s."
In theory and fact. I can imagine most would have a target price to stop
losses but to restrict profits to a target price may find you missing the
boat. Either the stock speeds past your target, or it never reaches it.
Targets are predictions and should be made, but they increase subjectivity.
"The way IBD establishes RS ranking is over a 6 month period of time. You
should be able to come up with some thing in IRL that would be better. But
that takes some time and energy to set that up. But IBD is still very good."
Many have tried to reproduce the IBD rankings. I have never seen any
successful results. The real power comes in that the stock is ranked against
all other stocks in their database rather than some mythical index. BTW: The
rankings use data from the last 12 months with a weighting towards closest
quarters .
"I have learned that keeping track of the market does give me more
information to make decisions on. i.e., hopefully information to bias the
trade in my favor."
And I keep up with market indices too. But, I am not selling a stock because
the Dow went down or up. The movement in DELL doesn't seem to be a reaction
to an index.
Richard Estes
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