Thread: Trends/charts
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Old 01-14-2002, 05:41 AM
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Default Re: Trends/charts



Well my thoughts on trends have been 50/50. I do agree in the hands of experts that have a large bankroll to work with, they are an excellent weapon. Stocks do tend to trend quite a bit, but I also think its a lot like selling naked calls. Trend players generally try to hit the trend for just a few points and then sell out most or all of their position. They miss the home runs. However once in awhile they get hammered when they hit a stock at the wrong time because news hits on it. So they are just like a guy that sells calls, hitting a bunch of singles when a stock doesn't move, but getting hammered the few times it does due to news he didn't expect. With this in mind of course the hope is to avoid the times you get squashed. An expert has a big bankroll that he can play many stocks at once. If you are the average Joe, commissions will kill you. Big players can play ALL the stocks that are charting well and play them fairly strong. Small players have to choose their best while leaving out a bunch that might also follow the chart and if he gets hit badly by a couple at once, he gets all but wiped out and probably gives up. Big players don't have that problem as long as they have a lot of those winners consistently going to offset the few bad losers.
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