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Wong your right but with a cheap stock like Omega one doesn't have time to
use an indicator if your in for the short term. By the time lagging
indicator has moved it would be time to sell. Unless the fundamental
picture changed then I agree but then you would be committed to the stock.
I think Omega has limited growth potential in an ever increasing
competitive market to commit capital long term. But I understand what your
saying and it could work your way.
Robert
Wong wrote:
>At 11:31 AM 11/10/98 -0500, Robert wrote:
>>
>>Best defense you could make with Omega is you can only lose a buck if your
>>wrong.
>--------------------------------------------------------------------------
>First of all, one doesn't just buy 1 share. So the risk is more than $1.
>
>Second, one would not just plunge in at $1. Either wait for some indicator
>(such as moving average or rsi etc) for a turnaround or wait for a better
>(?) price, maybe around $0.50 to $0.75, which may or may not happen, and if
>it happens, the price can still plunge further down.
>
>There's where averaging down comes in. Never plunge in with all the money
>reserved for OMGA purchase. Start with, say 25% of the amount to be
>invested, and plan for more averaging down.
>
>ULTIMATELY, ONE REALLY HAS TO DECIDE WHETHER OMGA WILL STILL EXIST IN THE
>NEXT 5-10 YEARS. Unfortunately, I don't have the answwer !!!
>
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