a9 I was one of the bearish few I must admit yesterday, purely because I thought we might get a plunge late in day with Euro stress tests etc. c'est la vie
This leads me to also give myself an uppercut (again) and tell myself to trade the chart and not a "possible" scenario I have in my head.
Taking this further, one thing I am noticing a lot on this thread is the tendency to try to pick bottoms. I did it too and it DOES NOT WORK. Ever trader who has been in this game for longer than 12 months says they did it once until they woke up and realised it's a lot easier swimming with the tide.
Sure you'll jag one here or there but you'll lose a lot more than you'll win. Especially in such a awful market like we have at present.
So, for anyone still reading, IMHO when a stock is below the 200-day moving average it's a candidate to short, if it's above it's a candidate to go long.
Now don't howl me down in protest. There are always exceptions. However, the day I realised that if you are considering trading a new stock, ignore anything under the 200 MA and just move on. There are another 3000 stocks you can pick and get better returns on your money.
