Kerx

I appreciate your response. Maybe you could let me know whether I've got it right.

I wait for market to bottom
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It took me a while -- a good while -- to start using "the market" almost like an indicator. When you say "bottom," I assume you mean "dip," Is that correct? Or do you really mean that you wait for an important bottom to form?


I like to buy strongest at right time.
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OK, so "the right time" refers back to the bottoming of the market? Does the "right time" also imply any particular behavior in the stock you plan to buy? Or do you just buy primarily based on the market?

I mostly trade one set up break out break down.
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By that I guess you mean a continuation move after a dip in a very strong stock?

Sometimes 52-week highs (almost any new high for that matter) are accompanied by a burst of volatility. Does that make you wary?

Looks like TIE's been making 52-week highs for quite some time now. How long have you been enjoying the ride?
 
Yes I use general market as my main indicator.

went long on TIE 11-2-05

about a week later after market turned.

I do not buy bottoms and sell tops always late to the party.

I trade stocks based on end of day.
 
I do not buy bottoms and sell tops always late to the party.
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Were your conditions also met around 10-01-04 and 5-16-05?

By the way, 11-02-05 is not exactly what I would call late to the party. Nice call.
 
Seems to be downtrending hard now.
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Yes, it does. At least as of yesterday's close.

I had been reading some stuff about volatility contractions and was basically interested in the coil -- to see how it would resolve.
So it moved South, which is fine with me. I don't own the stock. The question in my mind is: would I have had sufficient reason to buy it if it had done the same thing to the upside side? In other words, turn the chart upside down . . . and is it a buy?

If a nice, healthy breakout occurs how do I trade it? Would it be possible to just "lie in wait," with some kind of resting order at some pre-defined level? If so, what would that level be? Would I wait for the breakout and then be patient until it pulled back and tested a previous level? And regardless of what I did, where is the logical place for a stop?

SWB: Here's another one that moved South after a tight coil. So they do tend to tip their hand after volatility drops very low. Sooner or later I'll find one that moves up and get a better feel for how I might trade it.

Thanks for your comment. Gives me an excuse to gas on and on about this stuff.:D
 

Attachments

balda -- thanks for the URL. I read Darvas a while ago and then didn't follow through. This looks like an interesting place. I'll check it out later today or tomorrow.
 
If you'd like to swing trade take a look at this blog
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balda --

A very good resource, and a timely tip because I've had "the market" on my mind a lot.

Now I understand your entry on 11/2 a little better. I copied the good doctor's strategy and GMI definition over into MSWord just in case the blog ever goes down. Thanks again.
 
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