Tuesday, November 24, 2009

charts and patience

Making a few trades this week based on chart patterns.

some good ones like SENEA worked out perfectly.   A few did not work well.  In fact, it should be fine if only 50% of them work.  The main thing is having  a stop that exits the losers as early possible (without stopping out on noise).

 Today CKGT reported -- and it was a great ER.  Not surprisingly, the stock was flashing a buy signal, climbing over the 20 day MA.  Once again someone knew.

 I bought some ENG on a strong volume move and it immediately climbed higher and moving higher this morning.  It's just so easy when you wait and follow strength.  Forcing a trade or staying with a stock that isn't behaving just doesn't pay.  It never pays.

 What works is establishing how much I'm willing to lose first.  Then trading.  This is what you can control.  You can't control anything else.  Not being able to control yourself means you have nothing to back your plan on.

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