The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday.
It is important to remember that the stock market is the final arbiter. Regardless of our beliefs on political, fiscal, or monetary issues (oftentimes, all three can be combined), the opinion of the market is what matters most for technically-driven swing traders. There are many different ways to consistently profit in the market over time. The key, though, is not commingling styles for the sake of convenience or to try to substitute one style for another in lieu of discipline. A classic case would be making a bad trade, then deciding not to cut your losses and instead turning the bad trade into a long-term investment out of convenience.
Finally, it is crucial to be aware that at least eight out of ten stocks tend to move with the market, and most breakout plays fail in corrective markets. Thus, you simply must be aware of the overall market, regardless of how enticing any individual chart looks. If the market continues to improve, so too will breakout plays, almost by definition. If breakout plays break the hearts of eager hot money traders, that is a sign to exercise caution.
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Very well said and you make some excellent points.
Thank you, chiefton.