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Hi Joe:
In my case, it does matter.
By using an averaging down buy strategy, I'm assuming that the bullish
trend of the stock will continue.
Unless I misread what I've read, in a bear market, most, though not all,
stocks go down. I don't remember the percentage, but I believe it's very
high, maybe 80-90% of all stocks will go down in a bear market.
I would have to be very skilful in selecting those stocks which defie the
general market trend in a bear market if I continue to buy leaps (calls,
not puts). This is a skill I do not possess. I will also have to be very
skilful in market timing (technical side), like drawing valid
support/resistance lines, interpreting chart patterns, like
head-and-shoulder formation. But as I pointed out before, on a day-to-day
basis, I can't determine what the future direction will be (cf my post on
optical illusion).
So what's meaningless to you may be extremely relevant to me. Each to his
trading style and philosphy.
Regards,
Wong
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At 08:14 PM 04/13/2000 -0500, Joe Frabosilio wrote:
>To try and figure out if we are still in a BULL / BEAR market it foolish.
For me
>the Bull / Bear are just cartoon characters that mean nothing. For each
Stock,
>Comm, Index, etc. goes through its own ups / downs (bull / bear). And
many spend
>countless hours telling themselves which market their in, some losing it all,
>others gaining from it.
>
>Finding support / resistance lines and following price has been very
profitable
>and a very important lesson. Because at the end of the month, I have to
answer to
>the bank, for they hold the note to my house.
>
>To answer your question, does it really matter? If you are trading MSFT then
>trade MSFT, don't worry about the DOW or NASDAQ. For they are 3 different
trades.
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