Just read the last few posts. I've spent a year now learning T/A. There are some indicators that tell you a lot like the A/D indicator used in conjunction with the MFI and the OBV indicators about money flow, and share dilution. But when it comes to entry and exits on a stock, I'm getting to where I depend mostly on the moving averages and bollinger bands for support and resistance.
Now, for the point made above about the psychology. One thing I've finally learned the hard way, is to use stop losses to keep the trades gone bad from getting worse.
I can't count the times I held on to a stock that started tanking and believed it would be coming back, only to finally have to take a much bigger loss a week or two later.
One, it ties up your trading capitol. And two, it obviously kills your account balance. And then, if you just cut your loss right away, weeks later if that stock does come back, then you can jump in and out of it again with a profit.
Still learning!
Now, for the point made above about the psychology. One thing I've finally learned the hard way, is to use stop losses to keep the trades gone bad from getting worse.
I can't count the times I held on to a stock that started tanking and believed it would be coming back, only to finally have to take a much bigger loss a week or two later.
One, it ties up your trading capitol. And two, it obviously kills your account balance. And then, if you just cut your loss right away, weeks later if that stock does come back, then you can jump in and out of it again with a profit.
Still learning!
