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First thing I want to say thank you to everyone and anyone one who has
taken any time at all to help me over the last year and a half. I am
beginning to gain some experience with investing. Thank you.
After determining how I did for the year I made a whopping :) 17% on my
portfolio this year. As many of you know I haven't really started
trading until Sept. / Oct. of this year. So I feel very good about 1998.
(As compared to losing money when I first started.)
So what have I learned. Contrary to what most will say, I think you have
to make a trade work once you are in the trade. For me I used one
strategy of taking only a small position based upon my portfolio size.
If it went against me I would average. This is where the trend is your
friend and your trading systems pays off big time. I also realized that
when I enter and exit a trade, I should do so near the high or low for
the day based upon the average true range over 14 days. Since I position
trade equities I learned that when the going gets tough and you are up
against that mental wall, then believe in your trading system and your
indicators, if it has a good win/loss ratio. (It also helps to have
encouraging people around you.) I have also learned that I need to
maintain continuing education in investing in general. And on a more
personal note I need to exercise my body on a regular basis. Lastly, I
have been making most of my money by shorting stocks and after this
excursion with YHOO I am gaining confidence in being able to go long in
a stock. i.e., I am learning how to do both.
There is more but these seem to stand out in my mind at this time.
YHOO update.
I ended up going completely short at the end of the year on YHOO. It
just turned out that way, but this way I will not have to worry about
the tax issues of being both short and long in YHOO. I did have to add
more money to the account with the YHOO short at $52 since I miss
calculated my account balance.
I have made many mistakes on YHOO that had pushed the loss between my
long and short position as high as $600. And this week was $500 until
today. I went short on Wed only 60 shares @ 69 5/16 and covered on
Friday at 66 and went long at 66 with 60 shares. This closed the gap to
Approx. $135 loss between the two positions. So I am basically flat with
a bias to the upside by 10 shares.
I was hoping for a divergence between price and the stochastic but when
they ran the price up to $71, the divergence went away. By the way,
about 1/2 hour before the close on that day the price was in divergence
territory. My guess is that some one may of checked for the divergence
and then went after the ask to drive it up.
Personally I think this thing is till going to $82 3/8 based upon the
chart analysis that I had posted previously. Earning come out soon and
it will be a good time for the pros to sell into the good news. One last
thing. I am going to try to stay with YHOO much longer than I did with
ONSL. I think that there is a great deal to learn by staying with one
company until you get to know it.
Again thanks to all that have been willing to help,
Harley Meyer
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