|
PureBytes Links
Trading Reference Links
|
I have found that by doing the type of research you are doing, reading the
paper and listening to the news gives me an opinion. Any time you trade with
an opinion it is dangerous. If you are a technician then the chart and your
system should tell you which direction to trade and the probability of
success. You can make as much in a bull market being short as you can being
long. Every day there are stocks that are down. every day there are stocks
that are hitting 52 week lows. The method proposed seems to indicate that he
is looking for solid companies to only trade on the long side. This can also
be dangerous because, as they say, when they raid the house they take the
beauties with the dogs. If that is his trading style and it works for him
then that is all that counts. He shared it with us and I believe that there
are some people on this list that may very well benefit from it. It is also
the right of those who disagree to express an opinion for the other side. I
believe his system will be very costly if and when a bear appears in the
woods. Good trading, Ira
John Rastutis wrote:
> Len...
>
> First and foremost, I use TA and price as my trading tool. At times my
> holding period may only be a couple of days but why shouldn't I look at
> the longer term data? My success has increased generally every time I
> took advantage of any piece of correlating information.
>
> Why don't traders use any information that can even in the slightest way
> increase their odds? One needs every edge they can get. If I
> find(through research and testing) that a CEO eats a tuna fish sandwich
> at lunch and the next day his company's stock gaps up, I'll use it! I
> don't want to "handicap" myself by ignoring data. It's like going out
> into a forest that is infested with savage bears armed with a fly
> swatter. Isn't there a saying about this? Something like "Armed for
> bear"? Anyway, what's wrong with trading the price but having the
> research behind the choice of issue. You're right on when you said it
> can "minimize downside risk".
>
> Regards... John
>
> Len Olson wrote:
> >
> > Dear Paul,
> >
> > The reason I concentrate on fundamentals is to minimize downsize risk.
> > If the company is solid financially AND makes timely SEC reports, to me
> > it means that that it is a real company that is either making money or
> > is in a position to weather a storm.
|