Co-brand Partnerships

award-5.gif (6517 bytes)
Vote for Us

topsite.gif (1668 bytes)

webfifty.gif (6027 bytes)

 


 
drop_center.gif (2753 bytes)


wpe1.jpg (2095 bytes)


FREE EMAIL
Email Login
Password
New Users Sign Up!
 
NEWS SEARCH
WEB DIRECTORY
WEB SEARCH
 CITY GUIDES
search by:
 WEATHER

Current Weather
Enter Your City, State, or Zipcode:

   

MASTERING
THE TRADE

ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS
 

 
EARNINGS ESTIMATES

Enter Symbol

U.S. QUOTES

Enter Symbol:

U.S. CHARTS

Enter Symbol:

TECHNICAL OPINION

Enter Symbol:

CANADIAN CHARTS

Enter Symbol


 SEC FILINGS

Search For:
 

Company Name
Ticker Symbol

 BROKER RESEARCH
Exclusive Broker

Research
Enter Ticker

 

ARCHIVE:    JUNE 1999-JULY 2000  

An InvestorLinks article
distributed every market day.

Brocade Communications  (NASDAQ: BRCD)
Market Call™ for July 12, 2000
Contributed by Mark Seleznov, TrendTrader.com.

The purpose of this Market Call section is to educate readers in technical analysis patterns and indicators. As with all investment information, you need to research information and consult your financial advisor before initiating any strategies that are contained in Market Call.

Also, you must realize that as with all trading strategies, opinions can change quickly depending on market conditions and developments.

This column tries to present historical examples, potential set ups, and examples of entry and exit strategies.

Focus on Exit

When a trade entered goes as planned, the next step is to exit the trade.

If you are following a trend following method such as crossing moving averages, MACD signals, or Momentum, these indicators will also be you trigger to exit.

Many methods will keep you in a stock either long or short. Other methods will use one or more indicators just for exit, and another for entry.

Sometimes we do not discuss the exit as much as we should.

We know when we should exit if a trade goes bad, but how about the trade that works out well. Usually, most people will use the same indicator or pattern that initiated the set up to enter the trade.

For example, a MACD Buy would wait for a MACD Sell. A moving average crossover, would wait for the averages to cross back.

It is certainly fine to use trailing stops or a different pattern or indicator for exit.

The key here is to plan on closing a winning trade.

Let's look at our chart below on Brocade Communications (NASDAQ: BRCD). An exit strategy using the MACD indicator.

On July 7, 2000, there was a very good MACD Buy signal on BRCD.

Late today, BRCD flashed a MACD Sell or Exit signal.

When a stock gets overbought, the MACD can signal the turn nicely, just as it did on entry.

MACD is starting to turn from a very extended overbought condition.

If BRCD opens down, I would exit any longs in BRCD.

You should have your software set with the MACD indicator and when the histogram drops below the signal line exit the trade.

A trader would have locked in a nice profit. An aggressive trader would also reverse and go short at this time.

On a Short, I would place a stop at 198.

Chart courtesy of
 


Interested in adding Market Call to your website?
Click here for details: Market Call Information

Mark A. Seleznov is a General Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader. Mark is an author and recognized expert in equity Day Trading. He conducts seminars in Equity Day Trading and offers his firm traders training and support. If his firm holds any positions in the public companies he writes about, it will be noted at the bottom of his article.

Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner of Trend Trader, LLC. For information on obtaining Market Calls for your web site, newspapers, or publication, contact
Trend Trader, LLC at 602-948-1146

Disclaimer: Trading in securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. This is not an offer to buy or sell securities. The advice given above is of a general nature and should not be taken as a recommendation to buy or sell the referenced security.

 
Search for it at the TulipSearch Open Directory
Investment Bookstore Investment Newsstand Market Mavens Report

TULIPS AND BEARS NETWORK SITES

 

FINANCE
Tulips and Bears
Contrarian Investing.com
Internet Stock Talk
Traders Message Boards
Traders Press Bookstore

NEWS AND INFORMATION
TulipsWeather
Freewarestop.com
TulipsMail
TulipsEspa�ol
TulipSearch
TulipNews
TulipCards
AllMusicSearch.com
City Guides
Travel Center
Bargain Bloodhound...coming soon

WEBMASTER TOOLS

TulipHost
BecomeAnAffiliate.com
TulipDomains
GoSurfTo
TulipStats
...coming soon
TulipTools...coming soon

Questions or Comments? Contact Us

Copyright � 1998-2000 Tulips and Bears LLC.
All Rights Reserved.  Republication of this material,
including posting to message boards or news groups,
without the prior written consent of Tulips and Bears LLC
is strictly prohibited.


Last modified: March 17, 2001

Published By Tulips and Bears LLC