|
PureBytes Links
Trading Reference Links
|
HI WONG,
don't stop posting just because of some criticism,,
you obviously have a decent size account,so you obviously trade
differently.. and can afford to trade that way..Now my bank account
is not in the same league as yours (yet), so there ain't no way I could
trade like that, but I still like to read your posts, and I personally think
it takes a big person to come on here when you have lost some cash,
and not just when you make a bunch..
goodtrading / Ted
----- Original Message -----
From: wong <whs@xxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: vendredi, 2. juin 2000 22:36
Subject: [RT] Re: Gen: Shrinking
> Hi All:
>
> It's quite a humbling experience for me in the last few weeks.
>
> All through my posts about my averaging down buy strategy, I maintained
> that the basic assumption was that the stock market was still in a bull
> market. Averaging down buying in a bear market, I also mentioned, would
be
> tentamount to committing financial suicide.
>
> Hindsight told me I should have gotten out of a lot of my calls/leaps
> earlier on. In fact, my trading systems did give a number of sell (ie,
> liquidating) signals on ALL the stocks that I have calls/leaps on. Greed
> and fear held me back and I didn't sell.
>
> In fact, I bought more leaps up to May 24.
>
> Needless to say, the next few days saw more carnage...
>
>
> In any event, things are a little bit better, though I'm still way off
from
> my best, which was on Mar 27 this year.
>
>
> Since in my previous last few posts, I mentioned about averaging down on
> WMF AH (MSFT JAN2002 140 call), here's a summary of what I bought so far.
> Note commission is omitted.
>
> stk # contracts purchase cash
> Date closed @ bought price outlay
> ----- -------- ----------- -------- -------
> 04-05 86.375 20 9.875 19,750
> 04-17 75.875 40 5.750 23,000
> 04-25 69.375 25 3.750 9,375 (partial fill)
> 04-27 69.813 100 3.750 37,500
> 05-24 65.563 200 2.125 42,500
> --- -------
> total 385 132,125
> === =======
> average price 3.432
> =====
>
> On May 26, MSFT hit a 52-week-low of 60.375, and the leaps hit a low of
> 1.562 on that day.
>
> At this moment, MSFT is trading at 65.50, and the leaps at 1.812 to 2.062
> bid and ask. At 1.812, I would have lost 62,363, or 47%, before
commission.
>
> Would I further average down? Possibly, if MSFT goes below 55...
>
>
> I'm a bit thin-skinned, and I've been debating whether I should continue
to
> post to RT, because of so many negative posts on my posts. But then, what
> the heck! One can't be wrong ALL the time, anyways...
>
>
> By May 26, I was convinced we are in a bear market, as far as the NASDAQ
is
> concerned. I'm really confused by events that happened afterwards.
>
> I figured that if we're in a bear market (i.e., NASDAQ), I'd better wait
> for a sign that the bear is over, and the bull may begin again, to resume
> my averaging down buy strategy.
>
> On the weekly (attached) NASDAQ chart, I'm essentially looking at the
> wb-trend % indicator, on a weekly close basis. If the indicator crosses
> above the "-0.35" magenta line, as a rule-of-thumb, this would give me
some
> indication that the bull market may resume, at the moment or some time in
> the future.
>
> I will then switch to the daily Nasdaq chart, and monitor the oscillator
> closely. I would be waiting for the daily oscillator to dip below the
zero
> line first, then cross above the zero line for a daily "buy" on the
Nasdaq.
> At/prior to/after that date, I would possibly resume buying the leaps...
>
>
>
>
> Essentially, I still believe MSFT would not go much lower. I have been
> proven wrong many times. Perhaps I could be wrong again...
>
>
> But then posting to the group is not trying to impose one's opinion on
> others, but just an exchange of ideas.
>
>
>
>
> Regards,
>
> Wong
>
|