To All: Day Trading
It occurs to me that in reality not only are most of the participants on this thread not true day traders but also many are fairly new at trading in any form. Over the last couple of days it has really struck me how hard it is to be a "Trader" if you cannot be sitting by your computer all day. You can trade in "Positions" but making money "Day Trading" becomes almost impossible. The lesson is that we need to be very careful-- especially as this bubble seems to stretch thinner.
There are a couple of tenets that can be very helpful for those of us who are more position traders.
First: Know what you are buying. Don't chase rumors for their own
sake. Listen to Jeff: he likes stocks with a compelling
story.
Second: If you are not gambling with pure speculation based on rumor,
hype, and momentum you have a much greater chance to survive a
mistake. The stock is less likely to totally collapse and
probably will reverse itself even if it does pull back. I am
holding 4,000 of ASCT, and I cannot be at a computer all day.
What happens if that rumor gets squelched while I'm in an
airplane somewhere. (Do what I say not what I do, eh?)
To me the ideal situation for someone who wants to trade is to find a good but undervalued stock and play its peaks and valleys. You probably would do better just holding but, heh, it is something of a game. I just think the market is on treacherous ground and more care than ever needs to be taken before jumping into something listed on any thread.
The really good news is that this thread consists of a lot of people making positive contributions. Even so, how many of us have lost money on stocks such as NAVR, SATH, IMON,DBCC,etc.
Be careful!!!Most of us will not win agianst the MM's whose sole true purpose in life is to transfer our money to his pocket.
Good luck to all. Sorry obout the vebosity. |
