Tuesday, August 14, 2007

Selling more intense then previous sessions

The selling is increasing on more volume. There is not much escaping this sell off.

Current swing trades EXLS,LAYN,NVEC,APKT hit the stop point and I am out of the trade and have my capital protected.

This is why we use money management. To protect our money. That is always you're first job in getting into the stock market. Protect your money first and above anything else. The making money part comes after only you practice money management.

So while the market continues to sell down I have my money nice and safe in cash while the others keep losing theirs. Always practice safe market trading by knowing where the exit is at all times. The "Buy and hold" investors never have an exit. They only have a 'hope'. And you can't make money on a "hope". Once you rely on hope you have already lost in the stock market jungle.

This sell off has us now reaching deeper than we have been since this whole mess started. If the S&P closes at a new 45 day low (since this market pullback began) then we are seeing signs of the market getting still weaker and we have to be prepared for even bigger downward moves.

I'm watching CAT for a short position. CAT appears to have lost investor confidence and it on the verge of a significant trend change. I will short CAT on a move below $76.00

1 Comment:

Lisa said...

Took a small short position in CAT for a day trade only. Worked fine. Will be with you on a swing short at your entry! Thanks, Chuck!

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