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November 15, 2011
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This stock market will continue to dip and flip on a regular basis. The days of buy and hold seem to be long gone. Sometimes during the intra-day action the stock markets can have swings of 2 – 3 percent. This is a stock market for chart readers and not for the person that buys on economic data or price to earnings ratios. The stock market does not care what method anyone uses, it will take your last dollar if you do not know what you are doing.
Just think about it, earlier in the year most people where talking about how the third year of the president's term is always bullish and everyone should be long. Well, the stock market topped out on May 2, 2011 and has yet to get back to those levels. So much for that third year of the president term being a big bullish year. There are so many intricate factors that move stock markets. For that purpose it is always best to find a method that works for you and follow it closely.
Many traders such as myself like to follow leading stocks such as Apple Inc (NASDAQ:AAPL), Amazon.com Inc (NASDAQ:AMZN), and Qualcomm Inc (NASDAQ:QCOM). These stocks are certainly market leaders and should be followed closely. In other words, there is more than one way to skin a cat when trading. These days there is really no confirmed trend, therefore, it is best to use the charts and trade the best chart pattern setups. Doing anything else seems like gambling. Trading is all about putting the odds in your favor regardless if you are buying or selling. Trading is about taking risk at the best time for a move in your favor. When yout correct you should capitalize by using good money management. If by some chance you are wrong, then you should cut the losses quickly. Whether there is inflation, or deflation you just want to trade the best chart setups.
Nicholas Santiago
InTheMoneyStocks.com
