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I agree on entry relative to market movement. I have found the rule to
have the movement in my direction in order to be filled critically
important to short term swing profitable entries.
Jerry
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> From: A.J. Carisse <carisse@xxxxxxxxxxx>
> To: Omega List <omega-list@xxxxxxxxxx>
> Subject: Re: Fwd: OMEGA bashing
> Date: Sunday, January 25, 1998 7:19 AM
>
> greene@xxxxxxxxxxxxxxx wrote:
>
> > So it's easier to make that 10% on $1,000 than $100,000 - or is it the
other way
> > around <g>?
>
> What you *do* with $1000? <g> Actually, it would be easier with smaller
amounts than
> this.
>
> > There are great traders - and great investors. So who's done better -
George Soros or
> > Warren Buffett - and does the answer to that question have any
significance for the
> > average trader/investor?
>
> I respect both these guys, mostly because what they've accomplished is
impressive given
> their large base.
>
> > It doesn't take all that many small losses to amount to a big loss.
>
> I suppose so. However, similarly, it doesn't take many large losses to
make a
> catastrophic one.
>
> > And how can a day
> > trader possibly be talking about "bucking trends"? A trend isn't
something that lasts
> > for a few minutes - or a few hours.
>
> Why not? I suppose this depends on how "trend' is defined, but there are
distinct trends
> within any time period. Hell, you can even spot trends on Level II,
lasting as short as a
> minute or two. What we're talking about here, Robyn, is rather the
general direction of
> the market, whatever the period. Let me give you an example of an
extreme example of not
> "bucking the trend." I never initiate a new position in anything against
a negative
> market bar. For markets, I use 3 minute bars, so in other words if the
market is not
> going my way during the current 3 minute period, I don't act. I can't
tell you how much of
> a difference this makes, as i have found that the odds diminish here.
Another example
> would be not trading against the daily trend - i.e. if the market is up,
go long only, and
> vice versa. Personally, I don't follow this, but I do pick my long
entries very carefully
> on days of overall decline, and vice versa. On the other hand, longer
term players are
> more or less at the mercy of such trends, *hoping* that things go their
way in this
> department. I'd rather swim with the tide myself.
>
> BTW, I'm pleasantly surprised that this thread has generated so much
interest. I love
> this business, and am always enthused to discuss it.
>
> Regards,
> A.J.
>
>
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