Tips for traders:
I use to future trade P/V only. , so I apply the same ideas to swing trading.
Here are some fut applications:
As Swing traders we are looking for followup and sustenance,
When you head into 11:00 - 1:30 and the market is down,
One should never initiate postions on any short lived rallies because follow up will be nonexistent, Only enter positions when 1-2hour rallies followup is Available.
That is, if you want : once in always porfitable method at least for the day.
Market Overview:
Clearly we are still in a short term bear market, why is this?
Earnings are taking the market higher, No followup are taking the market down in the afternoon.
+ obvious under 50ma
<b>
Do not be tricked into short term rallies. No matter how good it looks!
</b>
While many may look quite appealing , watch the volume and you will notice , there is no 2000 share volume is going to jump no stock price 10-20 cents.
It will drop right back,
A stock that is strong will never drop to your position in the first place, if it re-rallies, there better be some huge volume backing it or its just specs with too much time on their hands.
I believe initiating swing postions in a bear market is quite hectic because lots of people want into good stocks, but specs/mm will drop bids anyway , so the chop will be intense. Even strong stocks will drop back to original positions because the buyer walks away knowing price will be lower unless he seens support.
I use to future trade P/V only. , so I apply the same ideas to swing trading.
Here are some fut applications:
As Swing traders we are looking for followup and sustenance,
When you head into 11:00 - 1:30 and the market is down,
One should never initiate postions on any short lived rallies because follow up will be nonexistent, Only enter positions when 1-2hour rallies followup is Available.
That is, if you want : once in always porfitable method at least for the day.
Market Overview:
Clearly we are still in a short term bear market, why is this?
Earnings are taking the market higher, No followup are taking the market down in the afternoon.
+ obvious under 50ma
<b>
Do not be tricked into short term rallies. No matter how good it looks!
</b>
While many may look quite appealing , watch the volume and you will notice , there is no 2000 share volume is going to jump no stock price 10-20 cents.
It will drop right back,
A stock that is strong will never drop to your position in the first place, if it re-rallies, there better be some huge volume backing it or its just specs with too much time on their hands.
I believe initiating swing postions in a bear market is quite hectic because lots of people want into good stocks, but specs/mm will drop bids anyway , so the chop will be intense. Even strong stocks will drop back to original positions because the buyer walks away knowing price will be lower unless he seens support.
read all journal, now looks like a good way to keep drawdowns low,for some personalitys, like CMS energy trade.
thanks
