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They live in a little-known to commercial stocks

| Feb 21, 2009

They live in a little-known to commercial stocks



I have made my living a professional trader,More than 15 years. So far, and has succeeded in creating a commercial based on a core set of principles and Commonsense market often. One of the things that observed over the years is that most investors ignore the fact the stock of short-term trading opportunities, especially those offered by the reaction in this direction over the long term ", although this is some of the lowest risk, highest potential cases can be found hopes .

A sharp increase when the stock, they tend to drop during the 3 to 10 days of profit-taking profits. After this so-called rest period, such as shares in many cases to continue in this direction. We have found that one of the many ways to trade the stock, which is ideal for companies that have a tendency for some time, then returned and is preparing to continue the work in the long term.

One of the favorite ways to take advantage of the market trend and the trend to restore the "L - 2 - 3 - 4s" that preparations are underway for four full days. On 1, 2, 3 Countertrend are moving in the direction of the market. On 4 when the trade. I love riding this stock started to move, and short-lived with them for a few hours to several days.

Rules of trading in the short term. First, you want to determine the very direction the stock. This can be done using the relative power levels of the site or on TradingMarkets.com Investors Business Daily. Ideally, you want to trade stocks with a hospital ranked 95 and above. After that, you wait for the stock for three days, especially after the rise in short-term. This means that after a short-term, equities will make three consecutive lower lows, or a combination of lower and lower levels of the day. (On the day when less than or equal to the previous day, which is quite high and greater than or equal to the previous day low).

As I indicated, for a period of three days with a very common phenomenon in the direction of stocks. The important question is, if you enter the market in this situation? Up to the direction of the market, enter a long position on 4, 3 over on high 0,10-0,20.

After I enter a position, and I always protect myself with a stop at the bottom of the pile of 3 a few days. For example, if 3 weeks is a high 42.25 and low was 41.50, the purchase of shares on the day to 4 in 42.35 and 42.45 - good until canceled - (Global Traders Conference) to stop near 41.50. I do this to reduce the losses in the event of my stock to oppose me. With commercial features a wonderful opportunity, but if you're not used to control risk, input the way the best in the world will not help you at all.

Another interesting aspect of the l - 2 - 3 - 4s are likely to be short the stock market "Everything for the successful trader must know how to do it. The period from 1982 to 1998 the stock market will almost every time, and create a generation of" the purchase of only "fair to investors and traders were required to, we believe that this is the way markets work, and always will be. Unfortunately, at this time many of the long-only traders benefited through May of this unusually long bull market, it will be decimated in the fall This is the market expectation, guaranteed.

We have found that first you must have a profitable strategy in the market also increased, too, if you want to profit in the trade of shares in the long term. This means that you must learn to short stocks. For example, you can also l - 2 - 3 - 4s and strategy with a strong pull in weak shares. You simply center the concept of short and weak stocks. All you have to do is to determine the imploding (decrease) shares and wait for them to mobilize a few days. When you start again on the long-term tendency to decline, and it has become a strong short-sale candidates.

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