Got this email this morning from StockScores.com . Has some good reading for a slow weekend.....Have a great holiday everyone!!!
The stock market is a money machine for a small number of people. Most investors, including mutual fund managers in nice suits, don't beat the stock market. You should accept this fact if you are investing in stocks.
That does not mean there are not lots of people who are making money in stocks. The problem is that they are only doing it from time to time. There are few who consistently do it, the rest are just getting short term loans when they hit a winner. Eventually, most investors give back their gains.
The result is that the average investor, whether they are making their own investment decisions or letting someone else do it for them, is earning what the market earns over the long term. Historically, that is about 7% per year.
Who is making all the money?
For the most part, it is the insiders. The people who start the companies that are the basis for the paper the financial industry calls stock certificates. The game is simple; sell the paper to the investing public, make a lot of loot, buy big houses in Florida.
Admittedly, my cynicism is over the top, but you get the idea. The stock market favors a small group of people who know more than the rest of us. For a long time, I have been telling people that to do well in the stock market, you have to do what the insiders do, but I have come to realize that doing this alone is not enough.
My preaching over the past ten years has focused on using market activity to figure out what the smart money is doing, and then do the same thing. One step behind the smart money, but 10 steps ahead of the public, and most anyone with access to stock charts can do well in the market. I made a lot of money trading stocks because I focused on the stock that are behaving abnormally and traded them well using simple technical analysis.
However, there is more to the game of trading stocks than just good analysis. There are good chart readers and well informed insiders that have the same thing in common; they can not make money in the stock market. Their lack of performance shared the same reason.
They don't have their head screwed on straight.
Actually, they do have their mental faculties properly aligned, but they are just not set up properly for stock market trading. From the time we are small children we are taught to avoid pain and seek out pleasure. We can all hear our parents warning us to not touch the stove, but to have a good time when we joined our friends. Our upbringing is destructive to our performance in the market. To be successful, we must learn to be behavioral deviants.
To make my point, I outline the life cycle of a stock, and how the successful trader differs from the minion who has the typical psychological responses to the stock market;
Stage 1 - Accumulation. Stock is quiet, trading sideways and without a lot of volatility. Most everyone ignores the stock because it has no sizzle. Insiders hold large blocks of stock and quietly gear up for the distribution.
Stage 2 - Breakout. Volume jumps up, psychological barriers are broken. Insiders begin to tell their friends of upcoming significant fundamental change. Pros take notice and buy the stock on the coat tails of the well informed. The public ignores it because they have not read about the company in the paper yet. It must be a scam.
Stage 3 - Uptrend. As a larger audience learns of the company and its promise, more buying comes in to the stock and it begins to climb. Pros begin to sell, but slowly. Average investor begins to buy.
Stage 4 - Pullback. The stock has gone up too fast, and some profit taking arrives. The jumpy investor who got the entry timing right but lacks confidence in his or her decision sells the stock with a small profit, and smiles in the mirror. The Pro holds on, Average Investor looks through the newspaper to find justification for ownership of the shares.
Stage 5 - Resumption of the Uptrend. The pull back is short lived, and the stock bounces and continues higher. The wannabe regrets the sell, but provides self counsel on the merit of making a profit, albeit a small one. The Pro might sell a little bit more, but still holds the majority of the original position. The Average Investor is getting excited now, and thinks about what could have been if only he had bought when he first noticed the stock.
Stage 6 - Exhaustion of the Uptrend. The media takes notice, and communicates the company's merits to the masses. The masses buy the stock, and it goes up sharply with strong volume. The Pros sell with enthusiasm. The Average Investor owns it now, and is telling everyone who will listen. The wannabe Pro jumps back on, after all, he was smart enough to buy it when the trend started, so he knows the stock well. Will hope make it go higher?
Stage 7 - Gravity Works. Pro selling begins to weigh on the uptrend, and the stock fails to go higher despite high volumes. The stock starts to go down instead of up, and the Pro is almost sold out. The Average Investor continues to cheer lead, hoping to rally support. The wannabe ignores what the market is telling him, taking a loss is too painful to consider. The company is featured on the cover of a magazine.
Stage 8 - The Second Guess. The stock bounces and starts to go back up. The wannabe Pro averages down while the Average Investor gets back to advising friends of his stock picking acumen. Pros sell their remaining holdings and begin to look for another deal to play, or perhaps start short selling the stock.
Stage 9 - Out of Gas. The bounce is a fake out, and the stock moves lower again. The public own this stock, and they have no more power to buy. The Pro are making money on the short sales now, but are despised by the masses. Calls for short selling to be made illegal are made by the Average Investor, after all, the short sellers are the demons causing the sell off.
Stage 10 - Dead Cat Bounce. The Average Investor and the wannabe Pro have no pain tolerance left, and finally sell for a big loss. The short selling Pros are the only buyers to take the share off their hands, and provide the needed liquidity. The stock bounces, and some short term traders make a quick profit. The Average Investor either swears to never buy a stock again, or tells lively stories over drinks about the one that could have been.
Stage 11 - Post Mortem. Pros have forgot about the stock and are considering carpet samples for their new home in Florida. Average Investor continues to follow the company and buys loads of cheap stock to try and overcome the regrettable loss.
The stock market is mean. You can be a good analyst, but if you can't overcome the psychological traps of trading, you will do what the crowd does. To be successful, you have be one step ahead of the crowd, and trade with unemotional discipline. There are strategies to take advantage of each stage of the market cycle that can be applied just by looking at a stock chart. They just require a bit of knowledge.
Posted by glassman on :
Kool quote. And in line with those "flat stocks" take a look at GE for the last year. I know it ain't a penny but if you have an investment portfolio in addition to your trading portfolio it has been flat while the DOW has been growing up around it.
Posted by EDDREAMS on :
WHAT AN EYE OPENER FOR US ROOKIES, THANKS ED
Posted by offshoretrader on :
yeah to be a successful trader you have to trade like a steely-eyed robot but it's impossible to do. thanks for your post alot of good info.
offshore.
Posted by babybloo on :
kcbudman, very nice post, very good read. I think everyone should read this.
Posted by VNGNTN1 on :
I noticed a post I think on General subjects thread. They were soliciting traders & professionals to post there wins & losses. I was surprised at some of the posts. I have averaged more than the 7% over the last five years, but not like they were stating, and even some on this board state some pretty large numbers. I have developed a "system" which I never violate, part of this includes not being greedy.I lock in the profits when I can. Not sure of my idea of how best to track how I"m doing. I don't take money made out,but reinvest. I use my profit taking as my measure. This year year on 90k I have averaged just under 400/wk. Anyone think this is ok, or should I consider a "Professional"?
Posted by SmokingUSA on :
VNGNTN1: Doesn't sound like you are doing to bad. I have a long way to go before I get to play with 90K dollars. After I win the Power Ball tonight I'll take 9oK and play with it. Feel free to email me your "system" I do good for a month and then it seems like I mess up for a month, Looking forward to you're system in the email Thanks! DD
Posted by VNGNTN1 on :
SMOKIN Wouldn't it be better to work thru the god ideas & the bad ones right here on the board that way everyone can benefit or revise the error in thinking. One problem on this board is that Volume is the king. I view this as looking into the sky with a telescope backwards and stating the sky is grey,blue,black ??? Yeah thats true, but how much of the hard earned money should be invested this way. There are a few guys on this board "Mullet",Glassman", "Ricpic", and others who have a small intrest here and impart "WISDOM" from time to time. They are investing the vast amount of thier money elswhere. What is needed here is a discussion of what works & what doesn't based on many factors. Let me start I only buy companys with a debt to equity of less than 1 if a company doesn't make this item available I DON'T BUY. Lets continue this !!! Van
Posted by SmokingUSA on :
Van: I hate to sound to dumb here but what do you mean by "I only buy companys with a debt to equity of less than 1"?
Posted by VNGNTN1 on :
Debt to equity is a ratio published that represents a companys liabilitys divided by there assets. This is important because you as a shareholder do not want creditors of a company stepping in front of you whith there hand out and "legally" able have thier palm greased first. ALSO I started 5 years ago with $500 rolled a 401k over & opened two "Roth ira's" The money I earn on profit taking is essentially tax free.
[This message has been edited by VNGNTN1 (edited December 20, 2003).]
Posted by SmokingUSA on :
Thanks for taking time out of looking up the next hot stock. So I could roll one of my IRA's into Scottrade or Low Trades and play pennies with it? So, then whats the second step in your system? I was thinking! Your system would be a great Christmas present for the beginners like my self! Thanks! DD
[This message has been edited by SmokingUSA (edited December 20, 2003).]
Posted by scs005 on :
That means , if we do the math PGHI does not stand here.
quote:Originally posted by VNGNTN1: Debt to equity is a ratio published that represents a companys liabilitys divided by there assets. This is important because you as a shareholder do not want creditors of a company stepping in front of you whith there hand out and "legally" able have thier palm greased first. ALSO I started 5 years ago with $500 rolled a 401k over & opened two "Roth ira's" The money I earn on profit taking is essentially tax free.
[This message has been edited by VNGNTN1 (edited December 20, 2003).]
Posted by scs005 on :
Sorry guys, Wrong board. I wish eveyone should do the math , debt equity , b4 buying the stocks, however god they are. Thanks - ur the Eye opener
quote:Originally posted by VNGNTN1: Debt to equity is a ratio published that represents a companys liabilitys divided by there assets. This is important because you as a shareholder do not want creditors of a company stepping in front of you whith there hand out and "legally" able have thier palm greased first. ALSO I started 5 years ago with $500 rolled a 401k over & opened two "Roth ira's" The money I earn on profit taking is essentially tax free.
[This message has been edited by VNGNTN1 (edited December 20, 2003).]
Posted by SmokingUSA on :
Van: Your trading system would be a great Christmas present! As a matter of fact I'll read any bodys trading system if you email it to me! I'm really interested in Vans, Joe Cools and Chicago Joes trading system! It would be a very Merry Christmas if I could read your guys trading system! Thanks my email is SmokingUSA@hotmail.com please no junk mail though. Thanks again! DD
[This message has been edited by SmokingUSA (edited December 20, 2003).]
Posted by scs005 on :
Can someone give set of protocols, while choosing a stocks. Expert please advise.
Thanks - Scs005
quote:Originally posted by SmokingUSA: Van: Your trading system would be a great Christmas present! As a matter of fact I'll read any bodys trading system if you email it to me! I'm really interested in Vans, Joe Cools and Chicago Joes trading system! It would be a very Merry Christmas if I could read your guys trading system! Thanks my email is SmokingUSA@hotmail.com please no junk mail though. Thanks again! DD
[This message has been edited by SmokingUSA (edited December 20, 2003).]
Posted by Mehul_Sangani on :
Here are the checks I make before buying stocks. Of course to pass these checks and make money it has to be long term holding.
Current Ratio >= 1 Debt-to-Equity Ratio <= 0.8 Price/Cash Flow Ratio >= 0 Leverage Ratio <= 2 12-Month Revenue >= $20 million Quick Ratio >= 1
After the checks, I look at the TA for timing. Also if I wanna buy 1000 stocks, I would buy in 3 phases to average the price down, if it goes lower.
HTH
Posted by scs005 on :
Thank you.
quote:Originally posted by Mehul_Sangani: Here are the checks I make before buying stocks. Of course to pass these checks and make money it has to be long term holding.
Current Ratio >= 1 Debt-to-Equity Ratio <= 0.8 Price/Cash Flow Ratio >= 0 Leverage Ratio <= 2 12-Month Revenue >= $20 million Quick Ratio >= 1
After the checks, I look at the TA for timing. Also if I wanna buy 1000 stocks, I would buy in 3 phases to average the price down, if it goes lower.
HTH
Posted by scs005 on :
Where do u guys find MM signal. Say for example , experts talk about 200 - mean MM needs more share, 500 means MM want to sell.
Please shed some light for newbie.
quote:Originally posted by scs005: Thank you.
Posted by VNGNTN1 on :
SMOKIN Frequently a quick play can turn into a long term hold because you can't afford to sell so low and must wait for stock to recover. During this time the company may experience setbacks. So before I purchase I ask mayself some questions Does company have sales to outlast current market conditions. Does company historically have greater than 0 ROE, ROA Does company have sufficient volume to bailout if required. Also take note of P:B, P:E One example I just sold a stock "TONS" which I bought two years ago, just before tariifs were placed on steel, my expectation was domestic steel production drastically increase. Now those tariffs are being withdrawn,the company stock price only appreciated slightly,no earnings.So I dumped 500sh(b$4500s$4750)I can do better than 2.75% VAN
[This message has been edited by VNGNTN1 (edited December 21, 2003).]
Posted by SmokingUSA on :
Van: Thats where my wife says I need to learn patients. If the stock goes down after I buy right now I've got my patients up to holding for a month. I can't tell you how many stocks I've had that dropped big time, and after I sold shot up way past their 50 week highs. I'm thinking where I've steered off recently is the first thing I use to look at was whether insiders were buying. And if I couldn't find that info I'd pass on it, along with looking at the profits and lost, only I didn't divide it I just made sure more was comming in than going out. When you are looking to buy a stock do you start looking with a stock screener, under the volume gainers, dollar gainers or dollar losers? DD
Posted by VNGNTN1 on :
SMOKIN Next we address how to find a stock. First I look to see how the 50 or so stocks in my portfolios cuts across the total economy and keep 70% "diversified" this includes cash. Then I listen carefully to news and screen for companys positioned to be a big gainer ie: Last July/August news reports stated that the natural gas supplys were low and would be for several years. Reasoning the utility company is surely going to send you a higher bill why not buy something to offset this cost and make a profit. Your wife would call this "common sense" I refer to this 30% of my portfolios as "sector" plays. NOW as for the Mrs. Sounds like she is a big asset for you. When you feel like pulling the plug on a stock. Turn the decision over to her with the basic facts. My guess is she will help. I do this often, it also helps keep her head into the familys financial progress. Next I will explain how I buy.
Posted by VNGNTN1 on :
SMOKIN The high volitility you mentioned in your last post can be controlled and we can discuss it as we proceed to the "buy" & "sell" concepts.
Posted by babybloo on :
VNGNTN1 Thank you for this very useful information i am enjoying reading theses posts as i am sure others are as well. Thanks.
Posted by VNGNTN1 on :
BABYBLOO More to come. Please ask questions. I don't know everything, but if someone disagrees we will learn something from that. Actually anything I say I can back up, but common sense is a big key. The experts are great at "manipulation" , but as long as there are trading rules these can be used to make money. It is intresting that this discussion occurs on this board where a lot of traders are being succered in and losing. Thanks KC for posting a topic that can be explored. VAN
[This message has been edited by VNGNTN1 (edited December 21, 2003).]
Posted by SmokingUSA on :
Van: First of all, thanks for your post. Lets pretend I'm just starting out. I just opened an account with lets say Low Trades and I only had $500. to start with. What would your first move be to get started out right. DD
Posted by VNGNTN1 on :
SMOKIN OK this is a modest amount of money. I would pick a sector that is not in your portfolio(diversify) and that is strong right now, this might require some "sector" research. Run a screen for companys with price under $5 If your screener offers it ask for ROA>5 & ROE>5 & P:E<20 $5.00=100sh $2.50=200sh $1.00=500sh remember it is a share that produces value much like 1 employee in a company.5))employees produce more results than 10, but 1m lazy/poorly managed employees may put a company out of business. Come back with a couple symbols and we will analyze them. VAN
Posted by SmokingUSA on :
IBZT GWDL NCVM CTKH RWNT CNCW AACS AGIS
[This message has been edited by SmokingUSA (edited December 22, 2003).]
Posted by glassman on :
Early this year I bought AMR(parent of american ailines) as the Unions were signing agreements to take pay cuts. I think I was watching it go from $4 to $7 the specifics arent important. The CEO got on the news and says--These are great fwd progress's but we may still may have to file bankruptcy-- the stock starts to plummit. I (mistake)sold at @$6. ($1.50 lower than where it had been the day before.)]It made it back up to $7.5 by the end of the next week and went on to double. now its back off its high of the year. My point is this--- blue chips are no security blanket-- I don't see much difference in the way the game is played-- You can make or lose more money the more shares you have --simple-- A .002 cent stock aint goin much lower-- but if it does you/ve been cut in half-- on the other hand if you have a million shares and it goes to a penny, you've made 8000 dollars on $2,000 risked. Now cost/loss/risk benefit analyses tells me I have to participate in a market like this and look for good companies. There is less attention paid to regulations in the pennies. But let's face it-- most of the problems the market has right now are about integrity in the market. If you have put your pension here you want the %$%$&ers to be treating it with respect not as a slush fund right? Didn't busch campaign on putting social security into the market -- think about that and enron and parmalat and MCI and global crossing for awhile. There is no safe harbour-- blue chips or pennies-- its all the same . You have to trade with discipline-- everybody is differnt-- what works for some don't for others it is good to share techniques and ideas and sample them for yourself but remember to find what works for you and remember it isn't the only path.
Posted by SmokingUSA on :
glassman: What use to work excellent for me, isn't working so HOT any more. I don't know if I just got careless or the market just isn't reacting like I'm use to. I use to buy and sell by the time I came home from work and make good money, Now I buy come home from work and I've lost a little. I figured may be I could learn a different approach since mine isn't so hot right now. May be I should just go back to downward flags? I just don't know. DD
Posted by VNGNTN1 on :
SMOKIN OK we have 8 candidates.It takes a while to check each one out so would you go to YAHOO/finance Click onto "Profile" then "Key statistics" and narrow your list to 3. Read these two carefully and decide if someone ask you to invest in a new venture would this company be ok with you. CAUTION: No information is worse than bad information. VAN
Posted by VNGNTN1 on :
GLASS Are you saying your stop kicked out or you sold ? Are you using trailing stops. I have had these situation a few times, I keep a portion of each portfolio in cash so I can place a BUY limit below current price When the stop kicks out your buy puts you back in. I had one that I bought 500@$4 rose over time to$9 kicked out at 8.25; bought back in 10min later 500@5.75 and closed @$8.75
[This message has been edited by VNGNTN1 (edited December 22, 2003).]
Posted by glassman on :
[I don't use stops unless I am planning on being away from the screens for a while.
That looks like a good plan, but you are talking about a rather awesome trading situation. The only kind of day moves I have seen like that are on news-- which means you had to be anticipating the news to get those kind of orders in place.
[This message has been edited by glassman (edited December 22, 2003).]
Posted by VNGNTN1 on :
GLASS Not really, sure you can only catch one or two a year, but if you watch the news and know your stock you can position yourself to catch these. Actually this thread hasn't progressed quite that far yet on how I work it, waiting for SMOKIN to get back on his picks VAN
[This message has been edited by VNGNTN1 (edited December 23, 2003).]
Posted by SmokingUSA on :
Van: Sorry it took me so long, I've been fighting with the wife over how much time I spend on the web looking at stocks. She does network marketing and she was mad. She says how is her down line going to get a hold of her if I'm on the internet so much. Any ways, I like AGIS if they had more news. Now what would your next move be? Don't get to up set if I don't get back to you right away, Still not done fighting with my wife yet. I'd like to get a DSL line so I don't have to listen to her complain so much.
Posted by VNGNTN1 on :
SMOKIN We have $500 on the table. ARE YOU COMFORTABLE WITH THESE ITEMS: 1-No earnings( a major -) 2-Converting 1/4th of assets to operate ROA ( a major major -) 3-6% Institutional(a minor +) 4-43% Insiders(a minor +) 5-This company dropped from $20 to $2 before general slid to market bottom. These plus other things indicate to a management problem. They need your $500 worse than you need to give it. You are very anxious to give this money away. So far talking with me you still have the 500+intrest+7.1% drop today. May I suggest you reread 12.21/2003-10:44 & 12/22-10:26 Pick your next best, but better yet rethink how to conserve your money(maybe rescreen for larger stocks)
[This message has been edited by VNGNTN1 (edited December 23, 2003).]
[This message has been edited by VNGNTN1 (edited December 23, 2003).]
Posted by SmokingUSA on :
Van: I'm going to have to do this after Christmas. Off the record I made GOOD money with AGIS I bought at .016 Its not easy to change styles. With only $500. in an account my way would to put a GTC order in for RWNT at for 22602 shares for .0219 and then a sell order in for .023 and keep playing with it. $500 is'nt much to play with. I know playing with it like that I could get in the dog house if some bad news came out. I was doing this with vntb, but I kind of traded to fast and got my last order for 59444 shares rejected which turned out to be a good thing because they fell the next day, but I screwed up after that and bought cncw at at .015 which of course got acquired which buy the way still don't know if I should take a quick lost or hold on. So far your way is the way I started out with which I thought would be great but because they didn't have any news the stock would just sit there. I suppose I could try that way again, but I want to make sure they have news behind them. I'm still working on patients. The stocks are listed is what I've been holding. Except for AACS and AGIS the shares of them are still my wifes I sold mine. So do you think I should sell the above stocks at a lost and move on or hold? Don't give up on me yet I'm just Bull Headed and it takes a while to knock some sense into it. I'm just going to humor my wife and get off the internet early, besides the markets close at 1PM Wednesday closed Thursday and close at 1PM again on Friday. Have a Merry Christmas! DD
PS My Wal Marts stocks doing pretty good, but I don't count them stocks into my portfolio of pennies. Take care!
[This message has been edited by SmokingUSA (edited December 23, 2003).]
Posted by VNGNTN1 on :
SMOKIN Someone who follows these stocks would better suggest selling at a loss. With the stocks I buy which are solid to start with. I generally don't sell at a loss unless something drastic changes. A note about holding AGIS they were just sued in Nov which always is a negative. Catch you after christmas.
Posted by SmokingUSA on :
Van: But after the law suit is over watch what AGIS does! Merry Christmas! DD
Posted by SmokingUSA on :
Van: How about AOXY? I'm not to impressed by the news or the number of trades or volume, but it looks like it might be good? What do you think?
Posted by VNGNTN1 on :
SMOKIN This one is better than some Iv'e seen. Highly volitle price which moves opposite general market. Looks like this would be a good time to enter as it is low @.01. Not a lot of volume, but should be enough to get out in small lots(10k or less). The one employee taking no salary and owns 82+% of stock, an dcould well make more money trading his stock than sales.
Posted by SmokingUSA on :
Van: For Christmas I gave my kids $500.00 out of my Scottrade account to play stocks with, so I don't have no quick cash to play with, I'm thinking of asking them if they want to play this one. I'd like them to start playing earlier in life then I am. Then maybe they would learn a way of playing other than my way . Okay then, I now have my order in for 49500 shares at .01 ($500. -5.00 for tade) I take that back they would or will be playing out of Scottrade account. ($500. -$14.50 for trade) 48550 shares at .01 (big difference on amount of shares isn't there? Whats our exit point or do we not use one and play longer than I'm use to?
[This message has been edited by SmokingUSA (edited December 25, 2003).]
Posted by TRSTURGUT-18 on :
Just My Thoughts,
Being new to stocks can be increasingly confusing to most.Twenty different opinions on what you should do and though the intentions are good it is ultimately your GUT that needs to feel comfortable with the purchase.The charts can look great...the business may look great but if it does not feel right you do not buy. It has to FEEL RIGHT.How can you possibly put a lable on what is a good stock? Like the previous poster stated AMR looked great and I think it is @$12.or so but not to long ago it was $2.00.What a rollercoaster ride.A stock is great when you beleive in it this allows the stockholder a sense of calm and I think that sense of calm or patience allows you to think in a rational fashion.I would advise you to find a business type that you are familiar with so you have an understanding of what it offers.Who they are catering to and how large that demographic is.Measure the upside to the downside.For instance I would buy as my first purchase a stock within 5% of its 52 week low.Percentages will tell you that more than likely it will retrace it's way back up.This may take time but again unless you are trading on a daily basis you must have the patience to sit and wait.I would suggest you accumulate this stock at a great price because there is not that much interest at the time and when it starts to rise and interest is shown sell at a nice profit.The strategy of buying when nobody wants a stock and selling into strength can work extremely well.It would be a good idea to look at stocks that have step by step growth.The ones that spike up like crazy fall the same way again great for daytrading but not for long term.Step by step growth allows for more strength to build for the long term.It depends what you are looking to get out of a stock that makes it good for you.Most of us are looking to get different results from the same stock.I would not like to advise anyone on what their first stock should be but if you are looking for the long term in a high growth business look at PGHI.Please understand this is my opinion and you should do your own research.HAPPY HOLIDAYS TO ALL....GOOD LUCK!
TRSTURGUT-18
Posted by VNGNTN1 on :
T-18 SMOKIN & I have entered into an ongoing discussion. NO advice is being given, He like most posters on this board are trading volume with a great deal of emotional energy. I am trying to suggest that trading has three components. First the brokerage house which has RULES; generally these are consistent and can be used in mathmatical calculations: Second a company where you have no control and thier reputation for providing good data becomes a strong contingency factor: Third is "you" the trader You must develope a solid trading strategy for several types of trading and never second guess yourself(adjusting your system based on documented facts is not second guessing) this is the only place you can exert 100% control therefore IT MUST BE RIGHT These discussions are for all of us to GET IT RIGHT VAN
Posted by VNGNTN1 on :
SMOKIN OK Now that you are in I break even looks like .0106. This stock does not work with my system so I must fall back on "common sense" looking back on the charts(recommend you do this)it appears that this stock spikes to .02 or above. may take a while( have my finger up in the wind on this) LIMIT OUT @ .019 profit $14.80
Posted by SmokingUSA on :
Van: I'm not actually going to execute this trade. I am going to watch it out of curiosity. After the first of the year I'm going to go through my stocks and see which ones I lost faith in, May be add a few bucks and the next time I buy lets try this again only I'll actually execute the trade. As you know every thing you do effects another and I don't believe in paper trades because by not actually executing an order your not putting a ripple in so the results are not 100 percent. I do want to try this again with a real execution though if thats okay with you! DD
Posted by VNGNTN1 on :
SMOKIN You should no by now that "care" is an emotion. When it comes to trading I don't care. It is a decision based on all the facts I can find. This board is valuable in that from time to time someone mentions a fact not available to me elsewhere, then I check it out. I agree with paprer trading comment. Also I would sell my losers before 12/31 and write off against winners & other taxes if you can. Also an earlier comment you made about can't change trading style. You can grow as a trader by learning new ways just like you learned the current style. Otherwise you have given up on life and start to die. VAN
Posted by glassman on :
The max loss you can take was 3000k$ last year did that change?
Posted by cabbage22 on :
no
quote:Originally posted by glassman: The max loss you can take was 3000k$ last year did that change?
Posted by VNGNTN1 on :
Excess can be carried forward. I also think you can average backwards three years by refiling for those years.
[This message has been edited by VNGNTN1 (edited December 26, 2003).]
Posted by SmokingUSA on :
Van: Sorry I took so long to get back to you. Been real busy. Had a run on rwnt so I sold that for a good profit. IBZT is looking good, expect to make a small profit on that. I'm buying a company right now you probably wouldn't approve of. (It has 500M out standing shares) It looks hot though at least in long run. The out standing shares was all I didn't like about it. Its been a great week. I can change my style, but thats not really what I'm after, I'm always looking for a better way to screen. I have to run. I have to go look up this one stock to see if I want to dump it for this other stock. Take care! DD
Posted by ththf on :