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Richard:
Are you the same Richard Stokes who is the money manager
in the Slothower(sp) stable? Just wanted to know if you are
that full-time money manager.
Charles
-----Original Message-----
From: Richard Stokes <stone@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, March 25, 1999 10:06 PM
Subject: Re: MM & Psychology
>Today I took a couple of hours off the floor and decided to day-trade some
>stock, and ran into exactly the same issue:
>
>About 11:20 or so, I purchased 100 shares of MINE at 64 1/8 based on the
>trend.
>
>A few minutes later, the stock hit $66 and I thought about selling for a
>quick $178 profit. Instead, I watched the stock move back down to $62. It
>began making lower bottoms, so I sold 200 shares at $62. I hoped to take
>the small loss and make it back on the second trade.
>
>The stock moved down over the next half-hour or so to $60. It sat there
for
>an uncomfortably long time, so I put a limit order to buy 100 shares at
$60.
>It hit, and the stock moved down to $58 within a minute or so. I bought at
>$60 because that's where the lower Bollinger Band was, and I was going to
>try and place the bounce. Unfortunately, there wasn't one.
>
>I attempted to follow the trend downwards. After a few minutes I sold
>another 100 shares at 59 1/8. I sat with this for at least an hour - much
>longer than I intended. I placed a buy limit at 56 1/4. This time, I
>intentionally didn't look at the trend or any of my indicators because I
>didn't want to be influenced like I was on the previous trade.
>
>The stock quickly moved down to $56 and hit my limit. I purchased stock
and
>it moved back up soon after to $58 1/2.
>
>Again, I tried to sell the next leg of the trend downwards, but it never
>happened. The price moved up to $60. It moved up so quickly though that I
>decided I would wait for it to come back down. I placed a buy order at 56
>3/8, which wasn't hit. About 2:30 I moved it to $58 because I wanted to be
>flat by the close. The stock ended up around $61, so it was a smart move.
>
>I came out ahead on the day. Analyzing my trades, I once again realized
how
>hard it is to follow a trend. Much easier to hit and get out, hit and get
>out. Had I just taken $100 on each trade, I would have made more money
with
>less risk. It is far easier to trade a system that gives you 80% winners
>than 80% losers - gambler's ruin is less likely also.
>
>rich
>
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