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Hi Karo,

 

I appreciate the sentiment of this thread - swing trading is increasingly of interest to me (very short-term background) particularly since I re-read Jessie Livermore + Stanley Kroll books.

 

I don't like to clog up someone else's thread, but I'd like to share a few of my favourite quotes from Kroll & Livermore...

 

"The experts are frequently wrong. A good technical approach to investing and timing, coupled with sound money management and a focus on trend following rather than trend predicting, are really the recommended ways to operate for optimum success."

ed: It is so true that analysts like to wheel out explanations for large market moves long after the fact became apparent on the chart isn't it?

 

"Every time you take a with-the-trend position, you should premise that you are in for a mega-move. By so doing, you will be encouraged to hold the position and not look for short-term trades. Let your stops take you out of those trades which fizzle"

ed: With this in mind, I think it really should be no surprise if the swing trader takes several small losses to every winner.

 

"Disregarding the big swing and trying to jump in and out was fatal to me. Nobody can catch all the fluctuations. In a bull market your game is to buy and hold until you believe that the bull market is near its end. To do this you must study general conditions and not tips or special factors affecting individual stocks."

Ed: And with that last one I'd simply like to give my very general thoughts, like Mr Partridge did in Jessie Livermores books, on the major stock index futures.

 

Displaying FDAX here, but FESX, ES would show the same story

 

http://s17.postimage.org/nyw96313h/FDAX_UP.png

 

I ask myself - what would Jessie do? Would he try and pick a top here on account of the bearish Fed Statement last night about curbing QE?

No, I believe he would be looking to buy simply on account of the path of least resistance being to the upside!

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