Market Talk with Piranha is currently moving to its new home at The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Thursday, January 27, 2005

Common Member Questions

…This is a series of questions from one of our community friends. He asked a few questions that I have received in the past so I though it would be best to answer him through the blog for everyone to benefit. I may even add some of these questions to the permanent FAQ page: -

- How should I best ready myself in using MSW?
- Should I go back and make a database of all your old stocks or do you feel that the new ones will keep me sufficiently busy?

I feel that the new screens will keep you busy enough, particularly when the market turns positive with a follow through. You could go back and overlook the weekly screens and study how certain stocks made those screens almost every week. When a stock starts to make the weekly screens every week, it is usually a very strong buy signal but it must be bought properly. By this I mean: do not buy a stock that is too far extended from either the pivot point or any long term support line such as the 50-d moving average. When you see some of the stocks that made those screens in good times, study the chart and highlight proper entry points. Become familiar with how the stock reacted to support lines. These patterns repeat over and over. You will be amazed at the feeling of déjà vu as you continue to buy and study new stocks.

- When the market is right and it's time to buy, will you be giving pivot points or other entrance information?

I will try to be as honest as possible with entry and pivot point information. Remember, we are not always going to be right or perfect for that matter. If I was always right, I would be one of the richest men on the planet. We make mistakes and we do make wrong judgment calls but we always protect every buy with sell rules. If you sell immediately after realizing you made a mistake, you will have minimal loss and be ready to try again with another stock. I always alert the community if a particular stock is too extended even though it is listed on a weekly screen. You are not the only person to ask for pivot point numbers. I will make this a priority when blue and green stocks start to make the weekly screens again. I will also consider writing exit points or sell stop areas in case the stock breaks down – similar to our red flag alerts.

- Since I normally work through the entire trading day and do not have access to a computer, what would be my best way of entering trades using MSW info?

Believe it or not, I usually decide if I am going to take a position after the market is closed, after I complete my research. I buy and sell from the same screens you view every week. How do you think I came up with those screens? I started doing my own research years ago and developed my screens for myself long before MSW was ever an idea. I have made trades during trading day hours but more emotion is tied to the decision so I try to keep it to a minimum. I typically make my decisions at night and then place the trade at the market the next morning or enter some other stop or limit. I prefer market trades on both buy and sell decisions.

I always wait for a stock to make the weekly screens, I don’t make decisions off of daily charts as I am more interested in the long term trend. I do stuffy daily charts for entry points once I am convinced to buy or sell a certain stock. I have found more success with this method. I admit that I have missed a few stocks using this method or I entered my position slightly higher or later than some traders but it has worked out better for me in the long run.

Hope this answers your questions and helps a few other along the way.


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