my philosophy…

As a pure trend following trader, I base all decisions on one parameter: price. Fundamental analysis is not valued here. I am (willingly) unaware of the specific business practices of the stocks I trade. That is not to suggest that I don’t consider the broad sector in which a stock trades. For instance, in addition to a declining price, my current short position in HOV is a reflection of the downward spiral of the overall housing market and homebuilding sector. But it has nothing to do with an estimated forecast of a sustained sub prime melt down or HOV’s increasing inventory of new homes (I don’t even know if that’s true). The price of HOV is declining, and that presents an opportunity to make money on the short side.

I do not have the ability to predict why HOV is falling or when it might reverse its current trend. More importantly, I do not waste my time trying to convince myself that searching for this information might improve my trading. All the “information” I need comes by way of the price.

This blog will provide in-depth account of the price action in the stock market. It will not consider earning’s announcements, economic reports, Bernanke or other exogenous factors – except to acknowledge that these and other events may dictate price action in some fashion, and should therefore be monitored.

Starting Monday, I will provide my daily assessment of the current state of the market and how best to profit from it. For those that accidentally stumble upon my posts, I hope you will find them an eye-opening alternative to the established fundamental analysis driven and day-trading sites that flood the web.