There have been frequent intelligent debates in this forum on the style of  trading ? i.e. "riding out a trend until reversal pattern appears" or "eating like a sparrow and run away before profit runs away in a trend reversal".

From my personal practice and also taught by Alexander Elder, I am very comfortable with both applications.  I found that riding the trend is very practical if the stock is on a trend and it is best to take smaller risk so that one will not be easily shaken out during minor accumulation phases while on the way further up. One can also add more shares during the accumulation if one is already in the money i.e. winning (see Livemore's posts aplenty of advices). However, it is very important to adjust one?s "stop loss" limit upward as trend rises to protect the profit made so far in case of sudden market failure or bad rumors/news on the stock.

"Eat like a sparrow" application is most profitable for ranging/channeling stocks. If the chart pattern of a particular counter shows clear sign of ranging with clear support and resistance lines, I will be very comfortable to bet "big" while on the support line and fly away with my profit before reaching the resistance line. I find that there seems to be more certainty in this type trading as long as clear lines of support and resistance have been identified.

 Just my 2 cents.

Peace

Every one in this arena is dueling with Mr. Probability. Who cares about high or low; may or may not as long as the mantra ?stop loss? is in place at all times. Keep chanting ?stop loss, stop loss, stop loss ?. 5000 times a day and emotions will no longer interfere when the time comes :)

Peace

The weak performance of STI this morning has shaken out some weak players. Good time to accumulate more. Will stay vested until trend ends.

Peace