|
PureBytes Links
Trading Reference Links
|
Leo,
You can tell who's behind in their email. But I enjoyed this thread a great
deal.
I myself have picked some winners. If I am not mistaken almost every stock that
I have held has moved higher in price. I kid you not. But I lost money on 90%
of them. I would get scared jump out and give them my money.
I am now trying a new strategy. And I am thinking that there is a stategy that
one needs to employee when a stock moves against you. This works well when
going short but here is a recent example.
I went short on ONSL at 28 3/4. I knew it could move against me. In fact all my
indicators said go long at this point. I'll wait I thought. The price marched
to 35 in a coupe of days. I was scared. Thought it would go to $40. On the way
down I took another postion at 33. So my average cost was 31. I was prepared to
average at 40 if i had too. No sleep & analysis paralysis was the norm.
The price dropped to 28 a few days later intraday. I could of covered for a
nice gain. But I waited. I said I was going to ride this out for a month. Wait
for it to drop to 20.
Well it moved against me again & I didn't want to go through the no-sleep again
so I covered at 30 1/4 for a small gain. If I would of waited another hour I
could of covered at 28 3/8. Feel like a loser. No because I won. I said come
hell or high water I was going to make this trade work. I had to go the wife
and we had to add some money to the account. You know how that can come off.
I also had fun. So I took another position at 28 3/4 again. Two days later
(Tuesday) covered for about a $50 gain.
Tuesday at the end of the day I took another short position the day before
earnings. Shoot the thing was in line w/ estimates & went up as high as 2
bucks. Then low and behold about 45 minutes before the market was closed it was
down 1/4 of a point. It closed up 3/8. I have to laugh. Tommorrow (Thursday) it
might roar up to 50 for all I know, but for now I choose to play the game to
keep from losing money.
My mistake when I covered at 30 1/4 was that I should have only covered with
100 shares not 200 shares. By being completely out of the market I lost
unforseen opportunities. So I am trying to keep a postion in at all times be it
right or wrong. Then trading in & out as my indicators tell me.
I am aware that the game is to make money. So as a new strategy I might open
another account at Datek. I'll just take opposite positions. Let one ride or
take the profits and the other I'll have to work at to keep from losing money.
This way I don't have to pick a direction. I just work it.
For now, I look at this way. There is always a low and there is always a high.
The security can have a daily range of 2 to 3 points easy in the tech sector.
If I get a point or two in a day on one account then the other I will have to
average out of it.
We all know that most stocks oscillate. So the risk of working a security so
that one can try to avoid a loss is reasonable. Nothing else if I fail the
trade is net net close to break even. With commisions of $10s it's worth a try.
I guess because I am still scared is why I am leaning toward this strategy.
I ordered the forms today.
Harley Meyer
meyer093@xxxxxxxxxx
|