Quote from wabrew:
First, let me say that I have been an enthusiastic reader of your journal for the last few months. Great work - keep it up.
Thanks for your enthusiastic support, and I appreciate your interest.
Quote from wabrew:
Second, I confess that I have used your work a little differently than you and your other readers probably have. Specifically, I trade your stocks much more frequently than you do, I hope not to your detriment.
Many traders use different iterations of the Hershey Equities Methodology. Several individuals have posted their versions amongst the many pages of this journal. A few use the principles behind the methods and arrive at entirely different lists of equities to trade. Some prefer to 'day trade' the methods using the same equities as myself, while others incorporate the philosophy into an entirely different set of rules. Whatever their use, I remain honored that the work here has benefited so many. Congrats on your continued success.
Quote from wabrew:
The question here is --- Since you have had so much success, and since I believe you have many more followers than you can imagine (this is the first time I have posted to your journal) is it possible that others like me are "front running" you, thereby creating the volume which helps to "generate" the numbers you need to get a signal -- and then creating some selffullment thereby creating the move that your system "produces".
While the situation you describe appears somewhat probable considering EZPW remained flat before shooting off like a rocket this morning, I doubt we can attribute this morning's price action to traders 'front running' my signals. While certainly flattering to be considered a 'major player' with the potential to move markets, in reality, I remain simply a small fish trying to scratch out enough of a living from the stock market to pay my bills. I move neither mountains nor markets.
Secondly, a very large group of people already monitor many of our stocks having arrived at a similar group of equities through the use of William O'Neil's CANSLIM Methodology. When the CANSLIM folks set their sights on a certain equity, volume and price rapidly increase. This "rising tide" of buy orders lifts all boats - including our own.
Do I think trader "front running" occurs providing the occasional 'self fulfilling prophecy?' Sure I do, but my answer would be, "So What!" If the front runners provide enough volume to signal additional traders into a market segment, then great for everyone involved. Some of the brightest minds on Wall Street watch price and volume movement. Whether they follow or lead my order into a trade doesn't concern me in the slightest. As long as we all continue to extract significant dollars from the market, I have no plans to argue over pennies.
Again, Congrats on remaining successful with your use of The Hershey Methodology. May you continue to enjoy an ever increasing level of success, and thank you for your input.
- Spydertrader
