Friday, July 17, 2009

PowerRatings Profit-Taking and Patience

Summary:

  • As traders who buy the selling and sell the buying, we see the current strength in the stock market as an opportunity to ring the register, rather than to become over-eager about initiating new trades.
  • In fact, believe it or not, but PowerRatings traders are more likely to spend their time analyzing potential short candidates trading below their 200-day moving averages than they are to look for instances to chase runaway, overbought markets trading above their 200-day moving average.
  • But what moments like this really mean for PowerRatings traders – beyond taking profits in high PowerRatings stocks that were purchased on pullback – is patience.
  • These are the classic symptoms of overtrading and while overtrading can get any trader into trouble, overtrading is a particular bane of high probability traders – in large part because high probability requires patience in order to work Patience may not be fun, but it is a key to profits where high probability trading is concerned.


Full-text here: PowerRatings Profit-Taking and Patience





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