wednesday night nervous nellies, page-30

V

I agree - the short to medium trend is down.

Unless you are a gun trader my advice is to respect the trend. If you believe the trend is down in the short to medium term then develop a strategy to make money from that trend.

In the case of a down-trend then, tactically, you could consider;

1.shorting the rallies, and
2.paying very close attention to maintaining your stops at an appropriate level to ensure you take the most you can from each move and that you get out of the trade if it moves against you.

If you can do both of the above with discipline and consistence you are almost certain to make money. When the evidence points to a trend change (to a short to medium up-trend) then change part 1 of the strategy to going long on the pullbacks.

Don't worry about 3 minute charts and day trading the index - only the very best traders survive as day-traders and everyone I've ever met who sucessfully trades intraday first cut their teeth swing trading (trading over days to weeks, not minutes.)

Just my views for what they are worth.

regards

- HBG