There will always be a reason to doubt the validity of any move in the stock market. Today, for example, you might find a few resident experts on your Twitter stream talking about how this morning’s gap higher just does not feel right, or that a few certain garbage stocks that they are keying off of are not holding some loser breakout. If you look hard enough, there will always be loose evidence to support whichever thesis you choose to concoct, given the amount of issues that trade. All of this is in addition to the absolutely brilliant “macro traders,” who have every reason, in their own mind, to view the European and U.S. debt issues as the proximate cause for any bearish price action in equities.
While there are many ways to be a successful trader, one of the best ways to lose money in the stock market is to commingle styles. I am a technical swing trader, with a focus on risk management not allowing noise outside of my style to distract me. What’s your style?
I am pretty busy inside the 12631 Chat Room today. Come check us out sometime. We have a positive atmosphere with a group of enthusiastic and successful traders who are willing and eager to help you improve.
“I am pretty busy inside the 12631 Chat Room today. Come check us out sometime. We have a positive atmosphere with a group of enthusiastic and successful traders who are willing an eager to help you improve”
Yes you are and yes we do 😉
Love this post Chess – you are so polite in saying “Ignore the noise.”
In my opinion, people feel the need to attach a reason for price action other than an abundance of buyers or sellers, and the financial media plays this up to keep ratings good. All you need is a filter – and the 12631 chat room proved to be just that for me – since i signed up I haven’t been using twitter as actively since the best information is available on the inside.
Chess, how do you explain the divergence with the financials? While I agree everything else seems to be pointing in a bullish manner these days, the financials are clearly signalling a problem with something. Sure, Goldman just can’t trade like they used to, but BAC is sending a signal…right?
they need to stop going down for the market to continue to rally
Looks like XLF just failed the retest of the h&s neckline above….Fazmobile warming up.
My style is to buy some beat down piece of shit and scream at it until it goes up. You would be surprised how often this works.