Thursday, February 24, 2005
2/24/05 OK, it's no as easy as I thought....
The last 3 weeks have been horrible! Yes, I am now losing money. Why? Well let me tell you!
I can't get myself to buy into the upward trends like I was selling into the downward trends before. I need to start using the Tick and Trin indicators to identify whether the day is trending up, down or sideways.
If the tick is consistently above 0-400 then the trend is up. If this is the case and even if the trin is slightly above 1, say to 1.2 or below the trend can still be up. The consistent tick count is a good indicator.
Assuming that this is the case then I must remember to sell on any weakness... It may not even have to be a -1000 tick. For some reason, you just don't see many of them. The buying seems to be coordinated but the selling doesn't. -600 may be enough. I should look for 50% retracements after an upswing and buy those dips. I should use the Fib numbers of about 1/3, 1/2, and 2/3 for my buys and stops. I have to have a new rule that if the tick is usually above 0 then I will never sell even if there is a spike!
OK. I will follow that.
Trader X
I can't get myself to buy into the upward trends like I was selling into the downward trends before. I need to start using the Tick and Trin indicators to identify whether the day is trending up, down or sideways.
If the tick is consistently above 0-400 then the trend is up. If this is the case and even if the trin is slightly above 1, say to 1.2 or below the trend can still be up. The consistent tick count is a good indicator.
Assuming that this is the case then I must remember to sell on any weakness... It may not even have to be a -1000 tick. For some reason, you just don't see many of them. The buying seems to be coordinated but the selling doesn't. -600 may be enough. I should look for 50% retracements after an upswing and buy those dips. I should use the Fib numbers of about 1/3, 1/2, and 2/3 for my buys and stops. I have to have a new rule that if the tick is usually above 0 then I will never sell even if there is a spike!
OK. I will follow that.
Trader X
