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Bob,
You wrote:
"Sent: Wednesday, October 24, 2001 10:17 PM
Subject: Re: [RT] Auctioning Fear
Fear? If fear equates to 35 years in the markets and watching the lunacy
of the high tech bubble, (which is still trying to re-inflate at every
tinkle of positive news), then yes, it is fear speaking. I've never
witnessed such mass hysteria driven by inane beliefs of infallibility in
my life. I'm not saying that someone else shouldn't short Ebay or buy
puts, etc., I'm just saying that I am not going to pick one of the net
lunacy plays to short. There are far more predictable and safer plays for
this trader.
Bob"
I share your perception of the 'new paradigm'. Like you
I have been in the game a long time, and every time I hear the phrase
'new paradigm' I laugh and cry.
I do feel, that the lower cost base of the internet may well benefit the
web survivors in a deep recession or depression against their
non-internet competition. We tend to get more price sensitive
when times get hard.
I also accept that from a single trade point of view, shorting a fast
rising stock in a mania could be very high risk - perhaps even
lunacy. If I had that approach I too would probably be
fearful. But, just maybe, your assumption of a single
entry is not the only way to trade. Certainly, market
makers take a multiple entry viewpoint.
Fading fast moving markets (in either direction) can be lower risk
than traditional single trade approaches.
In my coaching experience, many traders assume that their single trade
entry approach and their normal trade size is what everyone else does -
and so rarely 'think out of the box'.
Hope this opens up some perceptions - there are always 'new' approaches,
even if they are some of the oldest trading techniques.
Trading with good feelings, Ric.
www.traderscalm.com
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