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Re: Bunny post# 274493

Saturday, 07/24/2004 11:30:36 AM

Saturday, July 24, 2004 11:30:36 AM

Post# of 704048
The 10 day moving average does not apply to all types of trades.

The 10 DMA is trading basics 101. A simple rule to follow for the
unexperienced chartists. If the stock stays above the 10 DMA its a hold
if it falls below its a sell. This works a good percentage of the time

Bounce plays are a prime example where the 10 DMA may not be a factor...
A stock falls rapidly... ultimately plunging way below the 10 DMA, then you
have to know support levels to play the bounces.

Bottom feeders play by a different strategy, they look for a stock
that has been under accumulation at its lowest PPS levels, hoping for
a big turn around. This is HIGH RISK/HIGH REWARD trading... stocks
at their lows are there for a reason. Additionally, you may have to hold
for years to experience any profit or total loss of initial investment.

There are so many other techniques no one person can explain them in
a post. It can only be learned through years of experience (school of
hard knocks) or private extended training by a professional trader.

Thanks




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