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<DIV><FONT color=#000000 size=2>First and foremost STOP WATCHING CNBC. I only
listen to CNBC after the markets CLOSE you cannot possibly have the
concentration you need with those talking heads in the background. </FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Second, pick a market to become an expert in and
watch that market exclusively.Professional traders don't trade the beans one
week and next week decide they will become a S&P trader. Why? Because both
markets act differently. By studying a specific market and becoming a expert in
that market you will know what a real rally looks like, What a short covering
rally looks like, when there gunning for the stops, where YOUR market will most
likely find support. Get a feel for the market you want to trade.
</FONT><FONT color=#000000 size=2>What will you do if the market acts a certain
way? If it rallies strong where is the lowest risk to enter? Where is my stop?
What if the market opens down big, How will I trade it? What should I look for?
Cover every scenario you can think of. Keep folders of set-ups you see
week in and week out in the SPECIFIC market you decide to trade. Every market is
different and they all have their own personality. Trying to trade all the
markets is like listening to two guru guests on CNBC one says the markets going
to the moon the next says its going to fall out of bed.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Let me give you an example. When the S&P's
have the biggest rally of the day (overbalance in price and time) I wait for a
top to start and then I immediately draw fibonnacci retracement lines off this
rally. The market will tell you how strong the prior rally is by the %
retracement it holds on the decline. In my experience if the S&P's double,
or triple bottom at the 38% retracement you want to be a buyer at the breakout
of the highs. If it does not hold 38% watch the markets very carefully at the
62% retracement. Many times the S&P's will decline to 62% exactly and
reverse higher. Hope this helps. Good day.</FONT></DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: 5px">
<DIV><FONT face=Arial size=2><B>-----Original Message-----</B><BR><B>From:
</B>Linda Swope <<A
href="mailto:linda@xxxxxxxxxxxxxx";>linda@xxxxxxxxxxxxxx</A>><BR><B>To:
</B>RealTraders Discussion Group <<A
href="mailto:realtraders@xxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxx</A>><BR><B>Date:
</B>Saturday, October 31, 1998 4:47 PM<BR><B>Subject: </B>market plan
without market opinion?<BR><BR></DIV></FONT>
<DIV><FONT color=#000000>OK, RT's, here's another chance to woo me with your
brilliance! Lots of talk about must read the market but must not form
an opinion, at least not an opinion you set in concrete and can't
change.</FONT></DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV>I get a feel for the market, so, being human, that turns into an
opinion. Ten guys come on CNBC and confirm my opinion. This
forum confirms my opinion later that evening. Now I'm ready to
trade. </DIV>
<DIV> </DIV>
<DIV>Yet, so many say: listen to the market... or watch the price action...
or let the market tell you where it's going. How do I separate the
two? How do I read the market in an attempt to confirm my trading
plan, yet not form enough of an opinion to let it influence my
trading? </DIV>
<DIV> </DIV>
<DIV>I realize if you are trading a mechanical system, this is a moot
point. But this seems to be a key to discretionary trading.</DIV>
<DIV> </DIV>
<DIV>All wisdom is appreciated!!!!!!</DIV>
<DIV>Dizzy from going in a circle...Linda</DIV>
<DIV><FONT color=#000000></FONT> </DIV>
<DIV><FONT color=#000000>Linda Swope<BR>Swope's Mountain
Photography</FONT> </DIV>
<DIV><FONT color=#000000>**Climb the mountains & get their good tidings;
Peace will flow into you as sunshine into flower; the winds will
blow their freshness into you & storms their energy, & cares
will drop off like autumn leaves. John
Muir**</FONT></DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Sat Oct 31 21:22:19 1998
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Subject: Re: market plan without market opinion?
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In a message dated 98-10-31 18:49:14 EST, linda@xxxxxxxxxxxxxx writes:
> I get a feel for the market, so, being human, that turns into an opinion.
> Ten guys come on CNBC and confirm my opinion. This forum confirms my
opinion
> later that evening. Now I'm ready to trade.
>
> Yet, so many say: listen to the market... or watch the price action... or
> let the market tell you where it's going. How do I separate the two? How
do
> I read the market in an attempt to confirm my trading plan, yet not form
> enough of an opinion to let it influence my trading?
Linda
My first word of advice would be turn off CNBC. If you look at
indicators turn them off for a while and just watch price bars. Watch for
patterns. One thing I find that helps is watch the bars as candlesticks.
Not necessarily for the classic patterns, although you will start to see those
too.
Pete
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