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I wholeheartedly agree about not trading against the trend with the possible
exception of the limit down bounce. My trading methods only allow me to
enter with the trend. Thanks for contributing to the discussion as my whole
purpose of the message was to "hear" other opinions and observations.
Regards, Randall
----- Original Message -----
From: "Timothy Morge" <tmorge@xxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxx>
Sent: Thursday, October 26, 2000 11:50
Subject: Re: [RT] Fw: Limit Down Bounce
> Randall:
>
> I seldom trade against the trend. And when I do, I usually regret it.
>
> That being said, I see the same thing happening time and again when the
market
> approaches the limit collars--especially in the Nasdaq 100 futures
[perhaps
> because limit down is a common occurrence in the Nasdaqs]. I usually take
a bit
> of profit as prices approach the collars and then if there is a bounce, I
can
> always sell that portion back out once I see price returning to the daily
trend.
>
> I guess that's taking advantage of the bounce, but in the direction of the
> trend.
>
> Best,
>
> Tim Morge
>
> James Alvis wrote:
>
> > > You might want to consider the risk of buying at limit down in
volatile
> > > markets, anticipating a bounce. Even if it works nine times out of
ten,
> > the
> > > tenth time can bury you.
> > >
> > > By the end of the day in the Crash of 1987, many locals who
stubbornly
> > held
> > > to their habit of buying breaks, had to sell not only their Porsches
but
> > > also their CME seats. Will it happen again? Without doubt. Will
most
> > > traders see it coming or even recognize the danger as it unfolds? The
> > > markets have a nasty habit of regularly surprising the majority,
including
> > > some traders that are supposedly the most knowledgeable and
sophisticated.
> > >
> > > Consider the risk/reward. Preserve capital. Trade against a strong
trend
> > > only with great care. The markets will always be open tomorrow for
those
> > > with the means to participate.
> > >
> > > Regards,
> > > Jim Alvis
> > >
> > > ----- Original Message -----
> > > From: "Randall Kurzon" <rkurzon@xxxxxxxxxxxxxx>
> > > To: "Omega-list" <omega-list@xxxxxxxxxx>
> > > Sent: Thursday, October 26, 2000 10:38 AM
> > > Subject: Limit Down Bounce
> > >
> > >
> > > > I have noticed that almost every time the SP or the ND are halted at
> > limit
> > > > down it is followed by a bounce. I've been watching that for the
last 5
> > > > years and as far as I can remember there have been very, very few
times
> > it
> > > > does not bounce. Any comments as to the reliability of entering a
> > position
> > > > right after the market starts trading again from limit down?
> > > >
> > > > Randall
> > > >
> > > >
> > >
> >
> >
> > To unsubscribe from this group, send an email to:
> > realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxx
>
>
>
>
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