dt动量交易教材(19)

2020-11-29 00:46

dt动量交易教材

Notice the Spread on DATM above is 1 full point, and the volume is only 92K. Not with a 10foot pole should you touch a stock like this no matter what the action or upside. If you buyDATM at 39 ½ thinking it may go up, and the buying stops and selling comes in, even without adowntick you are already down 1 full point. If you had 500 shares of this stock, you would bedown 500 dollars from the start. MACR on the other hand, if you bought at 9 ¼ and selling camein, you would only lose 1/16 before the downtick. If you were in it for 2000 shares, that is only aloss of 62 dollars, quite a difference.

Golden Rule #5. Know Why You Invest and Get Out When The Reason Is No Longer TrueThis rule is probably one of the most difficult to teach as it involves ego with each trader. It isespecially difficult early on in a trade to admit the stock is heading the opposite direction youexpected. I have seen traders paralyzed to inaction when the buying turns to selling. This isespecially true when you have profits in a trade, but the profits are not as great as you had hoped.When selling starts your insurance policy against a fast and continual retreat down is your sell.When the trade dips down and starts back up to a higher price (movement that I call stair-stepping) 20/20 hindsight always seduces you to hold the next trade and not take early profits.Only hold through stair-stepping if you know

that a high percentage of the time the type of momentum trade you are in usually stair-steps inyour favor. I cannot emphasize enough, SELLING THE TRADE IS YOUR INSURANCEPOLICY.


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