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     holycow
Member
Username: holycow
Post Number: 522
Registered: 08-2004Rating: N/A
Votes: 0
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| | Wednesday, December 08, 2004 - 03:17 pm: |  
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... so today is one of those days that you find out if you are a TDT, right?
Other than rules, I believe a TDT needs to be disciplined in maintaining a positive mindset in times of calamity (like today).
If you have a strong urge to "get even", tell yourself this is quite natural, but frankly, you should not just tell yourself that, you must also act on it - by not doing anything that you might regret later...
If you have not acted earlier, now (at this moment) you may be a little late, so the best move is to do nothing and see how the market settles itself down.
Keep cool and good trading.
HC
"... if you've got a chart, I have an opinion!"
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chance
Member
Username: chance
Post Number: 373
Registered: 09-2002Rating: N/A
Votes: 0
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| | Wednesday, December 08, 2004 - 10:17 pm: |
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Hi Moo,
I expect most long term traders have suffered a bit of a drawdown this week, but hey, there's only 3 reasons to sell, right?
Anyway, here's some stocks from a couple of my watchlists that have stood their ground so far, we'll see on Friday if they backed down.
ABS ADB ABC APN ARQ AIA ASX BRK BKW CXP GTP MBL MGM MTT MLE PPT PRT PBL QBE SLM STO SUN PMP FXJ RDF SHF MVP
Woops, I think I just trod in something...... 
Regards
chance
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deanrosario
Member
Username: deanrosario
Post Number: 506
Registered: 11-2002Rating: N/A
Votes: 0
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| | Wednesday, December 08, 2004 - 11:55 pm: |
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Gentlemen - I'm sure some long term traders suffered today; but, let's be honest ...
If anyone thinks today's action is "a one off" or "out of the ordinary", then he is deluding himself.
We've had an amazingly simple bull run on the XAO - even the US market has been zigzagging at times over the past 12 months - so, in my limited 3 years' experience, coping with a day such as today, needs to be second nature to full time traders.
One of the major attractions of short term trading is the total indifference to the daily fluctuations in the market. Long term traders may scoff at we short termers who "miss the big moves" but I know I'll sleep easily tonight.
Dean
"It doesn't matter how often you are right or wrong - it only matters how much you make when you are right versus how much you lose when you are wrong." George Soros
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holycow
Member
Username: holycow
Post Number: 539
Registered: 08-2004Rating: N/A
Votes: 0
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| | Thursday, December 09, 2004 - 07:43 am: |
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Gentlemen,
When I wrote the above I was thinking of those trend riders who favour "buy on dip" trading on strong momentum stocks. Yesterday was one of those very few times the trick fails to work, and if they have bought in on 1/12, chances are really high they would have got caught.
How they handle the situation depends a lot on how good they can pull the cut loss trigger and how calm they are in dealing with the pressure. Hence the call for them to stay positive and keep calm so they can focus better. A very typical reaction for some would be to average down and this is something I was hinting at "not to do".
~~~~~~~~~~~~~~~
Chance,
With regard to your list, there are two ways to look at it:
1) their turn has not come yet;
2) they are extremely strong and good stock;
As you have pointed out, by Friday EOD, we will find out.
Cheers.
~~~~~~~~~~~~
Dean,
Your message seems to have a "personal" angle, wonder what prompted such revelation?
Other than day traders I think anyone who don't go short be they ST/LT trader would have got hit somewhat. Of the two groups I believe the LT trend traders are still doing very well because of the buffer they have built up. So, I am sure they are hurting over profit loss, but the pain should be manageable, nevertheless a profit loss is still a loss.
So far the market has given two very strong hints to us, the dump on 1/12 where according to news, some foreign funds were pulling out. Yesterday, I suspect it was the local funds. So, I don't think it is a good idea not to take them seriously. I have discussed the market peaking quite extensively here, check it out.
Lastly, if you feel being scoffed at as a short term trader (day trader?) is because you let them. Or if you feel hurt that I'd scoffed at the ST/daytrader in some of my posts (which?) - here is my apology - sorry, I don't mean to!
When I feel hurt by some others' harsh words, I find dealing them with a pinch of humour could make me feel much better - afterall, life is short.
Cheers.
HC
"... if you've got a chart, I have an opinion!"
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deanrosario
Member
Username: deanrosario
Post Number: 507
Registered: 11-2002Rating: N/A
Votes: 0
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| | Thursday, December 09, 2004 - 08:45 am: |
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Hi HC
No apology is required since nothing you said was offensive.
The reason for my "personal insights" is simple.
When it comes to making comments about trading/TA I think it is imperative that people make a statement about their trading time frame.
I only liaise with a few traders (most with a long term horizon) during the day and it is obvious that my interpretation of what is likely to occur in the next few hours is (and should be) totally irrelevant to their long term strategy.
In relation to your original post I was trying to make 2 comments:
1. Traders should not consider yesterday's market behaviour to be unusual or abnormal
2. The advantage of short term trading is a total indifference to such mood swings.
Regards
Dean
"It doesn't matter how often you are right or wrong - it only matters how much you make when you are right versus how much you lose when you are wrong." George Soros
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holycow
Member
Username: holycow
Post Number: 544
Registered: 08-2004Rating: N/A
Votes: 0
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| | Thursday, December 09, 2004 - 09:06 am: |
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Dean,
Glad to know you are not offended. Here are my response:
1) I am an opportunistic trader at the moment - I was going long until about 2 weeks ago. I went short term since. In general, my decision to go long or short depends on the chart set up - hence I am holding tight with NLX for example. My recent short trade was MTT, which you can check in "Paddock", I didn't want to go long with it because I didn't go in with a LT chart setup.
2) I consider yesterday's market behaviour to be unusual and abnormal and I am sticking to it. I see it to be a prelude of more such days to come, and I'd be guarded against it since I am on balance still having more long trades than short.
3) I am not clear of your Short term definition. If you are referring to day trading and have no overnight position, or if you are going short only; yes I think you are doing fine. But if you have been going long, even for short term trades, you still are exposed yesterday (unless your timing is that immaculate, then my salute to you).
Cheers and have a good day.
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HC
"... if you've got a chart, I have an opinion!"
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deanrosario
Member
Username: deanrosario
Post Number: 508
Registered: 11-2002Rating: N/A
Votes: 0
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| | Thursday, December 09, 2004 - 02:41 pm: |
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HC sorry to have caused confusion.
By "short term trading" I'm referring to using short term trend signals to open and close a trade and positions are rarely held for more than 24 hours.
I'm happy to take either a long position (i.e. looking for the price to rise) or short position (i.e. looking for the price to fall) in any trade.
For instance today I've received long signals; the past 2 days I've only received short signals.
Am I a daytrader ...? Well, yes, I will close any position on Day 1 if:
(a) my profit target is hit; or
(b) if my stop loss is hit; or
(c) if the trade hasn't done enough to keep me interested (e.g. it won't close in the money). With my style of trading, there's always another opportunity the following day so it's pointless to take on the overnight risk.
Regards
Dean
"It doesn't matter how often you are right or wrong - it only matters how much you make when you are right versus how much you lose when you are wrong." George Soros
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