Andy,
As I said yesterday, on the basic of plain, old-fashioned tape reading, a ‘down’ day for SARK should have been expected today, which is exactly what’s happening.
Suggestion. Clean up your charts. Get rid of all the distractions. ‘Price’ (and maybe ‘volume’) is all that’s needed to make informed buy/sell decisions. The rest of the stuff is just eye-candy.
The stock market is a auction market. People like to think that what they are buying and selling has “intrinsic value”. Yeah, one can play that game. But for the most part what is being traded doesn’t matter. It’s the game of back and forth, up and down, that matters. When prices get pushed too far in one direction, they reverse and go in the other direction.
Note the long candles in the chart, indicating trader over-enthusiasm. What typically happens the following day? Yep, a reversal. Yesterday was a ‘long candle’ day. The algos see that and reverse.
Charlie
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Charlie look at this.
Now that is set up using Quills method. Quills method tells me to say in, Your method tells me to get out. Now Quills was set up to be smoothed out so you do not get head faked all the time. At least that is how I understand it.
The question I have for you is with your method how fast are you getting in and out? This is what I am struggling with. I can day trade or swing trade. Which method would you call yours.
Andy
“The question I have for you is with your method how fast are you getting in and out? This is what I am struggling with. I can day trade or swing trade. Which method would you call yours?”
Andy,
I don’t have “a” method. I have a (constantly changing) portfolio of methods, depending on what I’m trying to do. Think ‘wood shop’ or ‘machine shop’. "If all one has is a hammer "–as the saying goes, “then the whole world looks like a nail.”
How fast can I get in and out? In under two seconds when I’m using that kind of setup. In and out in 40 to 50 years when I’m using a different kind of setup. “It all depends.”
My suggestion is this. Go back to basics. Why are you trying to engage markets? Is there another way to make an equivalent amount of money? Is the money even needed? Why not go fishing or build boats instead of sitting in front of a computer and gambling in what amounts to an online casino?
If investing is a financial necessity, then scrap the IBD stuff and go back to basics as Weinstein outlined. Everything an investor needs is there.
Charlie
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Charlie,
I am doing it because I enjoy it. I have been a fundamental investor for years and I find this method fascinating. Now look at this Charlie, this is a day chart on SMCI. You could trade this stock on a day chart and make a ton of money, but I don’t choose to do it that way.
Andy
I think the point is that Andy is testing out two different things, IBD and SimonSez. Why use Simon Sez instead of just price and volume? Well, because Quill was able to turn $5k in to $12m, so there is some desire to repeat this. It is so easy, tells you exactly what to do. In fact, Quill points out he has done this insane compounding twice. Why in the world would Andy, or anyone, not want to replicate that? No, there is no other legal how Andy can sit around home and turn $5k into $12m in 8-10 years or whatever it was. Right?
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