Home
Up
New Page 51

Co-brand Partnerships

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

topsite.gif (1668 bytes)

webfifty.gif (6027 bytes)

drop_center.gif (2753 bytes)



The #1 Electronic Broker for Active Online Traders

wpe1.jpg (2095 bytes)


WEB DIRECTORY
WEB SEARCH
 CITY GUIDES



City
State
Zip
 WEATHER

Current Weather
Enter Your City, State, or Zipcode:

   

MASTERING
THE TRADE

ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS
 


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


 

 

 

 

The Traders Wheel
12/7/98 by Alan Farley

MORE Golden Rules for Traders

Want to trade successfully? Just choose the good positions and avoid the bad ones. Poor trade selection takes a heavy toll as it bleeds our confidence and our wallets. We face many crossroads during each market day. Without a system of discipline for our decision-making, impulse and emotion can undermine skills as we chase the wrong stocks at the worst times.

Technical analysis teaches traders how to execute positions based on numbers, time and volume. Markets echo similar patterns over and over again. The science of trend allows us to build systematic rules to play these repeating formations and avoid the chase:

1. Sell the second high, buy the second low. The first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

2. The trend is your friend in the last hour. As volume cranks up at 3:00pm don’t expect anyone to change the channel.

3. Avoid the open. They see YOU coming sucker.

4. 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.

5. Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.

6. Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.

7. Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.

8. Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

9. Bottoms take longer to form than tops. Greed acts more quickly than fear and causes stocks to drop from their own weight.

10. Beat the crowd in and out the door. You have to take their money before they take yours, period.

mu2.gif (6207 bytes)

 

Reversals at the first test of a new high or low are common. Investors jump out at double tops after missing the first exit while value players buy double bottoms. Skilled traders also use this known reversal tendency to enter counter-trend positions.
Article contributed by The HARD Right Edge, which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. Article reprinted here with permission, which presents highly original tutorials, strategies and resources on multi-trend technical analysis and and short term trading. Article reprinted here with permission.
 
 

 

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

Questions or Comments? Contact Us

Copyright � 1998-1999 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: April 02, 2000

Published By Tulips and Bears LLC