Forum Archive Index - December 2002

[Phaedrus <Phaedrus@techemail.com>]

Holden, I noticed a typo in my post about ETF's. SPY tracks the S&P500, not the 
Dow as I stated. DIA tracks the DJIA, and QQQ the Nasdaq100.
 When paper trading, it is easiest to simply take either the Open or the Close 
as your entry/exit points. Which you use would depend on when you intend to 
access the market, and when you intend to do your analysis. Either way, using 
these retains a permanent record on the chart and removes any temptation to 
"maximise" your paper trade results by "buying" at the low of the day or 
"selling" at the high.
 The easiest and fastest way to fund a US trading account is by wiring the 
money. 

Gordon, What you say about the use of other indicators is quite true - they 
gave plenty of warning. I restricted myself to a single trendline in the 
interests of simplicity and in the hope of avoiding the usual wrangle. Silly me!

Bill, Stoplosses can only take effect when the market is open for trading - 
they are a trade. Certainly off-market trades and out-of-hours announcements 
etc could affect the opening price, but your stoploss must be triggered by 
Market price movements, whatever their cause. That is how it has to be. It 
would be chaotic if one aberrant off-market trade somehow triggered multiple 
stoplosses at the opening bell.

                Phaedrus.

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