Both the TSX and the Vancouver have literally cemented indicators, (indicators have narrowed, along with candles, are shorter... indicating more stable intraday pricing) as opposed to the past volatility... which is good, and can be a bad thing when you see this display of narrowing.
Narrowing is a foreshadowing of change.
As for being good, it suggests a continued rise but the caveat is, when will the broad market bulls change camp? I suspect a lot of bears will be bulls when the shoe fits. I think a lot of bears who have changed camp will play the downside when they get the chance.
Undeniably, there is still a lot wrong with the economy that has yet to surface and with so much novice cash changed hands, (there is not much novice money to move in)it will likely be a market where professionals are playing professionals, and that kind of poker is sharp and calculated.
It is time to hedge some profits.. and buy the pullbacks...
Definitely consider some profit taking and frame an exit strategy in your mind....
This is a general scope of thought and certain individual issues if not over bought, may buck the May go away and impending volatility of the doldrums.
Caution should be ramped to a yellow alert LOL. Protect your bananas.
If you see some broad major spikes, think of a broad market top and a bullish consolidation shaping up for a swing and a reload.
The time frame, depending on what your into, is from here to the end of June and the closer to the end June, the more attention you should be paying to your holdings for a move to cash.
Holidays equal a very quick grinding halt to licensing issued by governments for projects,,,, Everybody goes on a two week vacation except the government who take a two month escapade on the peoples cash using up their spending accounts to head for faraway places under the guise of deserving perks for distinguished service, which could only be a legend in their own minds.
Another round of Zombie slings please.
GLTA Lostoutwest
Kenuck SmallCap Trader
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Showing posts with label Swing Strategies. Show all posts
Showing posts with label Swing Strategies. Show all posts
Thursday, May 7, 2009
Tuesday, February 17, 2009
Swing Strategies
Liquidity is always a consideration in any trade. More so, if you're into trading a down trending stock. The consideration 1st should be the liquidity of the trade. In a down trending stock, bottom picking or dip picking, depending on your assessment of the trend, may make your assessment differ from mine. It will be decided by your choice of trend based on the big trend, medium trend or a spike within the down trend.
Trading a down trending stock is much like catching a falling knife... you can die the death of 1000 cuts.
Buying the lows on a down trending stock dictates a sell the top strategy. This is a very different concept than a buy the low strategy for a rising trend. You will be a rouge swinging gorilla trader.
Remember, if your buying dips on a downtrend, your counting on upswings from bottom pickers to give you a few pennies on the move to the top bollinger. In order to sell the top when it reaches your goal, or if the trend starts to turn against you (which it already is), you must be able to liquidate your shares quickly.
As an example... keeping the risk down requires you to consider a purchase of shares probably not exceeding 10% of the average bid dictated by the restraints of your pocketbook.
Trading a down trend often resembles day trading. On a downtrend, buying the dips won't last much more than a few days at most. You are really pushing your skill to last longer than three (3) days waiting for the top.
A dip is a volatile drop usually along the lower bollinger. (lower bollinger skid) and there is a few tricks to catching the cusp of the bounce.
If a 10% purchase of the average bid is made where up swings don't allow for a 20% return on a sell the top strategy selling to the bid, then you shouldn't be trading.
A real gorilla trader wouldn't be trading a downtrend anyhow, so you probably shouldn't be trading, unless your averaging/swinging into a bottom pick, where the rules of engagement are clearly defined.
Shorting in general as of Feb 19 2009, as a consideration at this late stage, is next to suicide unless your really well repaired.
Gorilla Simple.
GLTA Lostoutwest
Kenuck SmallCap Trader
StockCharts Public Chart List
Please read our Complete Disclosure
Trading a down trending stock is much like catching a falling knife... you can die the death of 1000 cuts.
Buying the lows on a down trending stock dictates a sell the top strategy. This is a very different concept than a buy the low strategy for a rising trend. You will be a rouge swinging gorilla trader.
Remember, if your buying dips on a downtrend, your counting on upswings from bottom pickers to give you a few pennies on the move to the top bollinger. In order to sell the top when it reaches your goal, or if the trend starts to turn against you (which it already is), you must be able to liquidate your shares quickly.
As an example... keeping the risk down requires you to consider a purchase of shares probably not exceeding 10% of the average bid dictated by the restraints of your pocketbook.
Trading a down trend often resembles day trading. On a downtrend, buying the dips won't last much more than a few days at most. You are really pushing your skill to last longer than three (3) days waiting for the top.
A dip is a volatile drop usually along the lower bollinger. (lower bollinger skid) and there is a few tricks to catching the cusp of the bounce.
If a 10% purchase of the average bid is made where up swings don't allow for a 20% return on a sell the top strategy selling to the bid, then you shouldn't be trading.
A real gorilla trader wouldn't be trading a downtrend anyhow, so you probably shouldn't be trading, unless your averaging/swinging into a bottom pick, where the rules of engagement are clearly defined.
Shorting in general as of Feb 19 2009, as a consideration at this late stage, is next to suicide unless your really well repaired.
Gorilla Simple.
GLTA Lostoutwest
Kenuck SmallCap Trader
StockCharts Public Chart List
Please read our Complete Disclosure
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