miketranz
961 posts
msg #63908
- Ignore miketranz |
6/18/2008 12:09:17 AM
Very simple,buy high and sell higher.If you want to outperform the market,you have to be in stocks that outperform the market.9 out of 10 professional money managers "investment advisors" can't come close.Imagine that,you hand your money over to these guys,and they can't even beat the SPY index.Buying new highs or breakouts to higher ground is where the demand is at.Strength begets strength.This is not rocket science,but most people would rather try to buy new lows trying to catch a bottom.That's a losers game because more often than not,new lows continue to make new lows.Its an ego driven thing.Do you know anyone who became rich with that method? I know many people who went to the poor house that way.Nicolas Darvas only bought stocks making new highs.His performance in the markets is legendary.David Ryan in the mid 1980's an employee of William O'Neil ,won 3 back to back U.S Equity Investing Championships buying breakout stocks.The big money is buying stocks moving up to higher grounds......
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maxreturn
745 posts
msg #63948
- Ignore maxreturn |
6/18/2008 2:12:09 PM
Mike...agreed with one caveat. I've had more success by having the patience to wait for a pullback after a breakout to new highs. Yes, I've missed out on some rockets by doing this but I've also filtered out a lot more losers.
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miketranz
961 posts
msg #63961
- Ignore miketranz |
6/18/2008 5:43:13 PM
The market has been really choppy making it difficult to swing a position.It just seems that there's no follow through in anything.Look at today for example.The Dow futures were down pre market like 90 points.The place to be is in energy stocks.Coal stocks had a good day today.I trade where the moneys flowing.But even still,you can get whipsawed in this kind of market.I also try to use a tight stop on all my trades.If I'm wrong,if the buyers don't show up,I'm gone.I don't take losing money personal,it's part of the game.Its been real hard to even get into an overnight hold without the market gapping down against you,even if you're in the strongest sectors.That's why I've been concentrating strictly on intra day trading.Believe it or not,all the big money and movement is right off the open.Every book on trading will tell you don't trade till after 10am est.I've found just the opposite to be true.It kind of makes you wonder if the person writing this stuff ever really traded stocks in the first place.That's why I don't read books on trading anymore.After twelve years in the markets,day in and day out,you kinda come up with your own methods.I buy into Vince Lombardi's way of thinking;"In all my years of coaching,I have never been successful using somebody else's plays".Even still,I'm always willing to listen to what others have to say.If anyone has any good,reliable open strategys,please feel free to share.Thanks.......
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miketranz
961 posts
msg #63963
- Ignore miketranz |
6/18/2008 5:54:47 PM
Max,agreed,pullbacks are a big part of jumping on board a winner.I've noticed that the one's that work the best are the deep retractions,after a big move on volume.Anything short of that seems to be less reliable and you're met with selling pressures......
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luc1grunt
622 posts
msg #63966
- Ignore luc1grunt |
6/18/2008 7:08:05 PM
from 2 scans to 20 to 3. 2 of those are symlist. Funny how the overcompication in the early stages lead to simplification in the future.
S/R, price/volume.
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waldr
15 posts
msg #63976
- Ignore waldr |
6/19/2008 12:02:02 AM
TrendSurfer,
You have any reversal strategy in your arsenal of methods that have worked consistantly over the years? Or you preffer breakouts only?
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miketranz
961 posts
msg #64083
- Ignore miketranz |
6/20/2008 9:36:49 AM
Trendsurfer's advice is on the money.You might want to ck out RSI(2) filter for reversals.Most stocks that show up on here are heavy sell offs.Wait either for a green day up and enter on the close,or wait till the stocks trades over the previous days high intra day plus .10.If the stocks goes against you back into the previous days trading range,scrath the trade.These stocks are much more risky than buying hi rs pullbacks.I myself have not traded the RSI(2),but according to the sf backtesting,they are good percentage plays.
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maxreturn
745 posts
msg #64085
- Ignore maxreturn
modified |
6/20/2008 10:07:06 AM
Trendsurfer, excellent posts and insights, especially as it relates to the broad market influence. I'm really glad to see your posts because although I don't have quite as much experience as you (only trading since 1990 or so) it seems our trading style/methodologies are very similar. Consistent success eluded me until I threw away most of my technical indicators and focused primarily on using relative strength to limit my stock picks. Focusing primarily on the highest RS stocks to buy on pullbacks when the broad market is in an uptrend or bottoming and on the lowest RS stocks to sell on rallies when the broad market is in a downtrend. I've gotten better at this as I've improved my ability to "read" the broad market. I'll get into more specifics down the road a bit but am pressed for time right now. For the time being I just want to thank you for your contributions and thanks Mike for starting this thread.
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rfrost13
5 posts
msg #64133
- Ignore rfrost13 |
6/20/2008 10:39:51 PM
I am a newbie compared to the ones on this post, having gone through the school of hardknocks with the market, but am finally seeing the light. In using trendsurfer experience of high rs with the pullback could you use the volume by price bar to expect where the pull back may go to? I appreciate your candor on this post, very educational.
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rfrost13
5 posts
msg #64136
- Ignore rfrost13 |
6/20/2008 11:18:37 PM
Hello Mr. Trendsurfer, been trying to set up sf with your parameters and I think I am making it to complicated, how would you set up for sf?
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