Education in the Markets

Some good trading the last few days. In and out of BIDU yesterday with a tidy profit. Pat myself on the back. Hold it Skippy. The friggen stock continued to climb! So, back in today off the breakout. And learned a few lessons: 1. When you buy, don't buy at the open. Let the initial buying pressure subside, and then purchase. This morning, you bought way too high, and would have been much further ahead if you had stuck to your buy and waited for the price to come back down. Don't forget to look at the 15min Stoch to see what prices might do at the open. 2. MOST CANDLES DON'T MEAN GET OUT, IT MEANS TIGHTEN YOUR STOPS! Learn to trade another day.          Learn the lesson and don't let it happen again

I watched a video by Bill Kraft yesterday, in which he talks about technical analysis. The interesting quote was: "You don't buy a stock because it bounces off a trendline, but because you can put a stop on the other side of the trendline." It was interesting, because it makes you think of TA another way. Not that you want to get in on all of the move, but use TA to limit your risk. In this way, you can stay trading longer. Technical Analysis provides a discipline that I wouldn't have otherwise to get out of a trade. Interesting thoughts.