Q:  Often time, I heard the word "consolidation" or the "market is consolidating", what is it mean?

A:  This typically means that the market is taking a breather after a sizable run up or sell off.  It’s characterized by sideways or mild downward action and generally light volume.

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Q: "This chart looks sloppy" – What is your definition of sloppy?  Can you provide a comparison example?  You have used the term choppy.. is that the same as sloppy?

A:  Sloppy is volatile price action with wide intraday price swings.  Examples: RTEC (sloppy), AEOS (smooth, tight price action).  Sloppy, choppy and volatile are essentially all the same and are words I use to describe wide intraday price swings (differnce between the high and low for the day)

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Q:  "Look for stock that has already "bounce off" the 50 dma".  So, should I wait for stock that is 5-6% from 50 dma to be bounced off, or wait for it to get closer to 50 dma?  When it is away from 50 dma, the "bounce off" (as you were referring) has not happened yet?

A:  Yes, you want to see a stock bounce off the 50DMA before making a purchase because you want to see it find support there.  If you purchase before it’s had a chance to test this support level, your risk increases greatly.  A good time to buy is right after you see a surge in price and volume off this support level and as close to support as possible.  I like to use a 5 min. real time chart for making buy and sell decisions.  So if I"m watching stock where the 50 day moving average is at 18 and the stock begins to surge in price and volume off 18 on my real time chart, I would pull the trigger on the trade.  I wouldn’t chase past 5% from the 50DMA.  I prefer to buy no more than 3% off support provide the volume is there on the buy side.