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Well i agree with you Mark.
Myself i use a method that automatically take care of the repartition or
diversification of the portfolio. I do not want to be as you said a buy and
hold because i do not believe in that type. I want to be where the action
is.
The way i work is that every night (after the close of the market) i scan
the nasdaq et NYSE AMEX. (No thanks here to Metastock 7.233 or whatever
number they want to call it to make fun of us) Then i usually come up with
about 200 stocks. Then i transfert that file to metastock and do another
scan with another system which is basically only a moving average cross over
(use the one that you feel comfortable, i have to be carefull here because
Mark Brown maybe looking into the rules of CTA or something. I am not giving
any intention of buy or selling right!!!). Nothing fansy here.
Then out of my 200 stocks i usually wind up with about 50 that are
interesting. Then you just look at them and decided the price that you fell
will be a buy for you. If the next day you are in the move of the market you
will buy them in equal amount of money (risk repartition here!!!) and then
if the market is against you, welll you never get in.
As a consequence, you have done three things at once. Repartition of the
risk, diversification, and try to make money (Which i beleive is the
hardest).
After that you can either put a trailing stop and wait to be pick up or just
put a mental stop that you are going to act on it. ( by the way i am for the
trailing stop because i have learn to know myself. A little bite of Latin
here for Steve Karnish "Cogito ergo sum" Right!!!) My father like to put the
mental stop. That is the beauty of the stock market everyone is free to
choose the way you like it.
after haveing done so for a while i have deleted my heavy calculation of the
F factor. I find it to difficult to handle and a little too slow for me.
Again thank for the freedom of the market everyone can use the way they
like.
That was just my two cents worth of explanation.
good trading toeveryone.
eric
ericduchesne@xxxxxxxxxxx
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