[Leo]

(06-21-2013 05:40 PM)gsinplaya Wrote:  

Quote:

I TRADE THE TREND on higher time frame.

Before starting i conduct a top down analysis of the market...i ask myself, what is going on a macrolevel?

what sector/industry is the macro picture affecting.....

I ask myself is the market(s/p 500 and dow) are they bullish, sideways, or bearish?

i look at the best ETFs on the morningstar website to see which is strongest and weakest...and if these aligned with my macro views....

i drill into the best ETFs and pick up the best of the best of the stocks that made up that ETF.....

i want my stocks to have zero debt, to have increasing profit margins...stable or declining overhead...solid cash flow....

I need a catalyst to be in play. I only trade growth stocks. I need the float to be small. I need institutional backing.

I need a kick arse chart patterns and a clear chart trend.

when it reaches what i consider the right confirmation level. i pull the trigger, i have a STOP LOSS....i have conditions for profit taking, pyramiding and final price target.

Quote:

All these are a waste of time/effort when you're up against players who don't play fair and use their position/information to manipulate the market.

This is rock solid advice above...I wouldn't call it a waste of time/effort.

The market can be as simple or as complicated as you want to make it but most of the best traders out there follow simple rules and don't try and outsmart the market.

I know. That's what we're taught. I find the above flies out the window when some heavy player decides to manipulate the market or if the market reacts irrationally or way too negatively on some news.

Irrational thinking wins over rational thinking. Market manipulation wins over rational thinking.

Maybe some input from guys in here so did the above stuff and still had their 401k slashed in half in 2008. Or in a recent example, investors in Herbalife who got squeezed in the 'short war' between Bill Ackman, Dan Loeb, Carl Icahn.