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Great example. Some stocks go up for a "good" reason but others are less
than substantial.
I wouldn't mess with this company - it has just 52 people! And here's the
blurb from bigcharts.com -
"If your preteen has come down with Pokemon mania, thank 4Kids
Entertainment. The company makes 60% of its sales by licensing rights to
entertainment properties and personalities (including Nintendo's popular
import) through its Leisure Concepts unit for use in games, toys, and
apparel. "
sounds like pure fad crap - compared for example to something like CSCO,
which is very fundamental to a large and fast-growing sector of the economy.
But say you haven't looked into it and you just go by the chart alone. The
risk can be minimized by buying dips (provided that the correction acts
right, dried-up volume, etc) and/or buying new highs out of a consolidation
pattern (but don't pay up too much past the pivotal price). The strongest
ones are making new highs when the market dips. Then, if it goes down very
much you probably should cut your losses. But once you get ahead you should
definitely ride out the wiggles - it takes time for these mega moves to
materialize and you gotta be in there if you want to capture it.
Here's a pretty picture that shows you where I'm coming from--
rgds phil
http://www.patterntrader.com
----- Original Message -----
From: Daniel Goncharoff <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, January 26, 2000 7:46 AM
Subject: [RT] Re: day trade vlnc (12of 16 good)
> So here's the $64 question: how big a wiggle tells you that you made a bad
> decision and should get out? I mean, when do you decide a wiggle has
turned
> into a KIDE?
>
> Regards
> DanG
>
> Phil Lane wrote:
>
> > Ahh... it helps to get the right day!
> > But stocks like this have a huge daily range. Trading for the bigger
swings
> > you should trade small enough to withstand the typical volatility.
You're
> > playing for a move that might take several months, so you gotta be able
to
> > handle the short-term wiggles. For example if you're playing for a 50
point
> > move you would trade 1/10 the size as you would for a 5-point daytrade.
> >
> > rgds phil
> > http://www.patterntrader.com
> >
> > ----- Original Message -----
> > From: Daniel Goncharoff <Daniel.Goncharoff@xxxxxxxxxxxxxxxxxxxx>
> > To: <realtraders@xxxxxxxxxxxxxxx>
> > Sent: Wednesday, January 26, 2000 7:26 AM
> > Subject: [RT] Re: day trade vlnc (12of 16 good)
> >
> > > Uh, maybe he dislikes being the guy who bought SDLI on Monday at 275,
and
> > had
> > > to sweat out the ride to 235 on Tuesday before coming back into the
260s
> > > today...
> > >
> > > Regards
> > > DanG
> > >
> > > Phil Lane wrote:
> > >
> > > > I never can figure why people want to work this hard!
> > > > I mean, you could always do it EASY way, i.e. buy some leading
stocks
> > like
> > > > SDLI, JDSU, TQNT, ITWO etc and double your money just by hanging on
for
> > a
> > > > while.
> > > >
> > > > I'm not picking on you!! Just searching for answers. With any luck
we
> > could
> > > > get a good discussion going.
> > > >
> > > > rgds phil
> > > > http://www.patterntrader.com
> > >
> > >
> > >
> > >
>
>
>
>
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