To whomever this may help (starting by me)

Have been reviewing Tim’s successful (all -1) alerts and think I am finally getting a hold of the wrongs of my ways.

I have been obsessing with Candlestick charting and trying to feet stocks came up in volatility filters and sudden spikes to this patterns looking for reversal. Therefore, I have been overtrading and overstressing and getting pain in exchange.

Over the weekend I am holding 500 shares short of STAA, Why? Because after an, according to me, big spike from 4.60 to 5.60 (wow , 20%) it was followed by a bearish engulfing pattern and hasn’t reversed it yet. So far I am almost where I started on Wednesday with theis position.

Does that means that candlestick analysis doesn’t work? No, I believe it does work and can help to spot the breakdowns, and it gives you a more than 50% chance that the reversal occurs, however, in the textbook of candlesticks, the author means clear that reversal does not mean reversal of the trend, but it is a pause in the trend, and after this pause, it is still to determine if the trend will resume or will go back on the opossite direction.

Also, success of Tim’s method consists not only in the fact that he is more than 50% right (way more than 50% judging for the alerts) but in the fact that each time that he is right he is right big, and when he misses, he misses small.

Similar Thing happened to me With GPIC, holding short for some days and just fooling around.

If following Tim’s methods strictly, I should never have entered this positions in the first place since they are not up enough, and, in the case of STAA before the spike it has a strong trnd in place.

So starting on Monday, I’ll close my existing positions and sit and wait for a freaking supernova, not for whatever spike appears and then looking for reversal signals.

Bought 1000 shares at 2.64 when it cut like butter the 2.61 resistance, then grab another k at 2.75, saw it goin without rest to its 2.84 high. THen hell it pulled back but never crossed the 2.61 support (would have dumped it then).

It looked so real since it accelerated like hell when it crossed resistance. SOld 1700 shares at 2.72 and 2.70 almost breaking even, holding 300 shy shares expecting continuation of the cup and handle, but I didn’t feel like holding the whole bag for the weekend.

Speaking of retarded- has anyone looked at the spread on MITI?

Gunz, of course I didn’t buy the Google BS, it actually turned me down on how primitive the hype is for this company.