Faith versus facts ..., page-8

madmacs re: stops Hi madmacs ... psst .. IMHO firstly suggest you lose that gif Signature before Daryl finds out ... might avoid a copyright issue ... lol

Your question re: stops is interesting and is related to ENTRIES ... which is the beginning and one I have been putting for as long as I can remember.

The AGL chart is a good example and as my original post mentioned ... "it moved into a BUY on the 180602 on my chart watchlist" ...

Whilst we all agree that EXITS are the predominant factor determining success or failure in the market, we need to understand a holistic approach is needed.

EXITS (say according to stops of one kind or another) in the main are a RISK MANAGEMENT TOOL and protect our PROFITS and from downside LOSSES.

ENTRIES (early) are more often overlooked as the predeterminant of PROFIT and as I have argued previously, we need TWO psychic positions ... one when we are OUT of the market looking to ENTER and the other, when we are IN and managing a position.

TWO different strategies and disciplines requiring different thinking along with a 'mental switch' which must be learned and developed ...

Derivatives players strive to be AHEAD of the Market by at least ONE DAY ... this is a suitable GOAL to work towards.

EARLY ENTRIES also mean you catch the early bounce and at least know will cover your costs if profit takers move in or the movement fails to confirm, so also qualifies as a RISK MANAGEMENT tool.

An early entry also puts you well into the green and so takes reduces pressure on EXITS ... you will find you are almost never left holding a loss and agonising for a reversal to salvage a position ... yuk ...

LATE ENTRIES such as now proposed for AGL creates exactly the dilemma you are now faced with ... your thinking more about STOPS and EXITS and you are not even in the trade yet ... this is the problem.

EARLY ENTRIES is a learned TRADING SKILL and each according to individual trading strategies/risk profile/etc ... I am fast but the HC who is regularly in front is CRASHY ... he is usually a day in front of me ... I don't know yet how he does it yet but I will work it out... lol

Obviously, ENTRIES are a combination of fundamental/technical analysis and particularly in uncertain times such as now, company anns are a major factor ... all part of the process .. also patterns in profit taking have altered in recent times so it is a fluid thing which in itself is part of the skill.

Alert watch LONGS are NAB and NCM

Alert watch SHORTS are FJX, LLC, QBE.

There are others that have already triggered and are excluded.

These are not recommendations but examples of where our head should be ... the rest is qualified as above.

Cheers ...


This is only my view ... read the red stuff.