Analyze different stocks and markets to understand trends leading to successful trading and possible long term investments
Monday, December 17, 2007
Nice ride on DRYS
DRYS broke down further today. It broke the critical support around 81-82 and that accelerated the downfall to 71. I have covered my short here. My entry was in 85, 89 and then at 81. I am expecting to see a bounce from 69. If it breaks 69, I will reenter my short but I guess it will more likely bounce from that level.
I have been actively trading for the past 3 years. After 2 years of struggling with stocks, I reached an inflection point in October 2006 and have been making good profits since then. I learnt that identifying trends early and focusing on the fundamentally best stocks in that trend is very important. Moreover just fundamentals are not good enough. You need to complement that with good Technical Analysis to pick great entry points and exits. They say a picture speaks a thousand words and I strongly believe in that. I use trendlines, Fibonacci and Elliott Wave theories as part of my TA tool sets. Last but not the least, one needs to keep accurate trading records and have a sound money management system to succeed.
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