Hot Trading Tips -
Common Sense! - 
What are they saying:
When everybody is running around saying how great a stock
is, then everybody who can buy probably already has, and the
only direction for the stock to go at that point is down.
When it is obvious and exciting to
everyone, it's too late.
Class in session:
It does not pay to argue with the market. Experience teaches
that fighting the market can be a very expensive lesson.
Market index:
Buy when market indexes are in an uptrend. This reduces your
risk on the long side and improves the longevity of bullish
moves in the stocks that you own.
Know the rules...It just makes COMMON SENSE!
When shorting, keep in mind that if a stock pays a dividend
while you are holding a short position, you must pay back
that dividend. Most investors are unaware of this simple fact
but it makes complete sense. You are borrowing the stock and
any dividend payment should be owed to the "actual owner"
of the stock. This rule can mean the difference between profit
and loss.
When inflation is a concern, gold stocks tend to do very
well. So, when inflation is on the move, look to the golds for
golden profits.
How long should it be?
A cup and handle base should be at least six to eight weeks
in length, starting with the first week closing down off the
stock's top. What a great formation to trade!
Follow through day
When you get a follow-through day, signaling that the market
is beginning a new uptrend, the vast majority of investors
simply do not believe it's for real. They are scared to death
and are so busy licking their wounds from all negatively of
a downtrend they they are conditioned to doubt and be afraid
of every rally. Many of the best bull runs start out this
way.
Trend is your friend
The trend is your friend. Position your trades based on the
market's overall direction. It just makes COMMON SENSE!
Faulty ditribution
If the market logs three to five ditribution days, and most
of these days show an index price spread from the high to
the low of the day that is very small, and the amount of the
actual price decline from the prior day is also very small,
even though there is a volume increase and the price closes
down, the movement is not significant. These types of distribution
days may not be enough to cause the market to turn down.
Accumulation
The average investor, stockbroker, or academic never takes
the time to check or learn to read a chart properly or, due
to disbelief or pure ignorance, does not understand how important
it is to be able to spot volume accumulation or distribution
in a chart pattern. This is like a doctor never taking blood
tests or x-rays to see what is actually going on with a patient's
health.
MIstakes
Plot out your mistakes on charts, study them, and write some
additional rules in order to correct your mistakes andthe
actions that cost you money.
Just like a good boy scout…BE PREPARED. A day of reckoning
is coming and if we are ready… major profits will follow.
Class dismissed...It just makes COMMON SENSE!
Have a profitable day,
MARC BARHONOVICH
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