Just a note about fashion and in particular hats. It often comes down to which one to wear? And there are several. Sometimes you have to decide do you want to wear an investor cap? Then by all means do the DD, look for consecutive revenue and earnings growth, understand and believe in the management and what they are trying to accomplish. Then dollar cost average yourself into retirement bliss.
Here we have GE, Bombardier, American Express, General Motors as well as some of the places we shop like WMT, HD, and BBY. Want to go out on limb, maybe hog heaven, Harley Davidson too, sounds better then t-bills at a cocktail party. We can get curious, and find out where the kiddos are getting their hats and fashion threads too. ANF and AEOS or the GPS seem to always pop up. In technology, we have some great leadership too, namely SUN, MSFT, JDS (JDSU), SNE and INTC. I would suggest having at least 50%plus of any of all of ones portfolio in these names and walk away.
OK you're still here, pity. But I kinda figured you would be.... Don’t want to hear about dollar cost averaging and maximizing your IRAs or Canadian RRSPs. Didn’t come to Soup City to hear things any good financial planner could cough up. I see. So then let’s now switch to another hat. But brace yourselves. Once you put on a hat of a daytrader, things get a bit hairy. This is where allocation really does matter, this is where you can make or break a trade in seconds. For starters, to go with that lovely fedora, you will need some hardware. I trade with three totally separate systems, which I am working into a LAN. All PIIIs and LII trading systems. Off shore accounts too. Next I don't sleep, Sharks never do remember, this is a round the clock job.
"Trend is your friend", in this world, it is the law. Lets look at a recent example. Last week Clinton mentions stem cell research will be permitted and you immediately start thinking like a daytrader. First the obvious, STEM ASTM and GERN. OK for a ride, but you crave more, then you go to your favorite bio-tech, don't know any, grab Merrils holders BBH finance.yahoo.com. Got a few precious seconds for some DD, find out who's in the BBH: My favs are HGSI, CRA and DNA: finance.yahoo.com and hang on to the ride with a two pt trailing stop. Got stopped out, at the bottom and missed the run, maybe cause you jumped in and didn’t allocate, and missed the big picture.
Need a rest, ok I won’t overwhelm.
Next post I will tell you how to get in, when to get in, and when to stay in, what stops to use and when to go ltd…
Now think about this, is this the place you want to spend the rest of your trading life with….
I figured you’d say that….
See you soon.
Also coming soon, a discussion on diets, and in particular, Fiber. We all need some, and you are going to get some, this week…
Trade smart,
Sharck |
