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[QUOTE]Originally posted by The Bigfoot: [QB] Jg, I have been watching over the past few weeks and I would like to give you my opinion of your trading style. (Please remember that this us just an outside opinion and I do not mean to be telling you how to trade. Do what feels right to you.) From where I am sitting I am not sure that the 3% method is the correct strategy for you. Your day job takes you away from the market too often for you to be a quick mover even with the help of a partner which is necessary for the 3% method. Also, your personal preference in stocks is always multi-dollar despite your fairly small bankroll which says to me you feel a need for the safety of well-established stocks. This is not a bad thing but percentages move slower the larger the pps is which is not what a %3 shark is looking for until his bankroll is too big to move in small caps. Given what I know of your personality and time commitments I am going to suggest that you ought to think about changing your strategy from 3% fast action trader to trend rider/probing investor. Trend riding is similar to swing trading but an investor waits until the trend is easily identifiable within the chart before entering. Paying attention to your trendlines will also give you a clear indication of when it is time to sell as well. Trend riding works best in larger stocks with longer histories which I think would complement your natural attractions well. Probing is a technique that many of the greatest traders use. Probing means entering a stock in stages. Remember earlier we talked about how doubling down (cost averaging) is a losing man's scenario because the only way you can double down is if you have already let yourself lose a good portion of your investment capital? Well, this is the opposite of that. Once you have identified a stock you feel meets your criteria you predetermine how large a position you want to take in the stock and then purchase 20% of that position. If the stock breaks the trend you cut your losses and have only risked a small portion of your capital. If the stock sidewinds you can choose to wait it out if it is still riding the trendline or cut out for 'greener' pastures. If the stock confirms the trend and appreciates as expected you take your next dip in and purchase the next 30% of your position. Follow the same routine and if after a few days the stock still confirms the trend then you make your final 50% purchase. The anti-intuitive portion to probing is that you WANT the stock to move higher before adding to your position. This strategy is not about getting the most stock for your money, it is about getting a safe stock for most of your money. Making the stock confirm itself twice as a steady climber before putting in your full investment is a great way to make sure you aren't going to get caught hard if you have to look away for an afternoon. It also supports the forward momentum of the stock and encourages other traders to take positions as well. Just some food for thought. P.S. CMCSA....it is indeed trading sideways. Now the next question you need to ask yourself. When it is done trading sideways what is the stocks next move, up or down? What is your next move? Are you in control? [/QB][/QUOTE]
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