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Richard,
I sure agree on your last statement. I use the indices to
determine whether my next position will be long or short, but I never
close an open position because the indices change. I only close an
open position because the stock target or stop has been hit. Also, l
don't usually even have a target for momentum stocks in new all time
high territory. For the real rockets, I prefer to let the profits run
until the stop takes me out.
Jim
-----Original Message-----
From: Richard Estes <rtestes@xxxxxxxxxxxxxx>
To: metastock@xxxxxxxxxxxxx <metastock@xxxxxxxxxxxxx>
Date: Thursday, August 20, 1998 3:06 PM
Subject: Re: Weekly Pick (long)
>"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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