|
PureBytes Links
Trading Reference Links
|
>Date: Fri, 10 Oct 1997 11:00:33
>To: "Richard Estes" <restes@xxxxxxxxxxxxx>
>From: Arthur Rivet <55crownvictoria@xxxxxxxxxxxxxxxx>
>Subject: Re: Trading
>
>At 03:28 AM 10/10/97 +0000, you wrote:
>>Having noticed that KEG was at 7.50 sept 96. Mary at 15. LSS at 12.50. NBR
>>at 15. I suppose they should have stayed low.
>>
>>Price has nothing to do with goodness or badness; Float makes a greater
>>difference. Keep Float under 30M. I wouldn't have minded getting KEG at 7.50
>>for 4 X move rather than .33 move by buying at $25. We all have different
>>mindsets, some pay off. Some restrict our trading. There are many that would
>>not hold through the august 18% correction or the recent 13% one .
>>
Richard
Your right on a couple of points. I should have said BEST PERFORMING stocks,
because they are not necessarily the BEST stocks. Float is also very
important as you said. You want enough float that there is "some"
instutional interest, but not so much float that the price cant be moved.
After all its the action of the Big Boys that move a stock. However, I
wouldnt have bought those stocks a year ago for a number of reasons, none of
which means that they were "bad" stocks. I want stocks that have momentum,
Ill jump on a moving train instead of getting on in the station, not knowing
when,-if ever the train will leave.Yes, I might miss the ride of my life on
the Orient Express which may be leaving in an hour, but whose to say the
train isnt going into the shop for repairs for a few weeks too. Thats why I
want something that is moving, one can do all the research in the world, the
stock can look great, yet it dosent have to go anywhere. And if its a low
price Nasdaq stock, you know damn well that you probably bought it at the
ASK price, because those thieves,the market makers, wont sell it to you at
the BID price. The spread is another reason why I keep away from the lower
price stocks. It wasnt always that way. As I said,I have been trading for
quite awhile now, I have a decent amount of money involved that I can buy a
higher priced stock in round lots, but it wasnt always that way. When I had
a smaller amount, I had to buy the lower priced stocks because it was all I
could afford. Thats all part of the process. Take care,and good trading.
>
|