If your intent on owning internet stocks. (Buy Stocks that you know and like,but don't fall in love) Sit back and wait until you see them build some kind of base. When they move up again, start buying. It's really not that complicated. Yes there are risk as in anything else. But why do we buy as they are going down,including myself. We do that because we forget the rule that I mentioned above. Your not going to miss anything major if it's a good stock.
You mentioned you bought AOL at 88 today. Lets use that as an example. I'll use the link below with their chart and I know a lot will differ with me and some might even agree, but who cares you posted this to me. I'll try and answer in a way that I buy. (again, when I'm not forgetting the rule I mentioned above). Plus if you see a post from some others and myself buying and selling that doesn't go along with what I'm saying, is what I refer to as trading.
Getting back to the chart if you go to the left and look between June and July. You will see it went to about 90 or so, and then back up and tested the old high.(about 110 or so) It did not have the support to break through that old high and started down again. This time it had a little support going down it stopped before it reached 90 and started back up past the 110. This to me is a buying opportunity. (again people will argue about this) I can only say that it has cut my losses and made some nice gains, even in the 1970s and 80's. With that said you would have gained about 4 or 5% in a short period of time.
Now this is the easy part, but again if you talk to most they will say I have a hard time selling. This stock is a good one, I'm not letting the MM's take my stock.This stock will go back up.( I can only say that you can buy it back when ever you choose to do so.) As you read some of the other post you will see what I mean. Anyway getting back to the selling, my rule is quite simple you pick one. when the stock drops 10 or 15 % from it's last high dump it. (I say 10% on the more risky ones) I don't care if it's your mothers company, and she tells you it's going back up. People lose a lot of money listening to others. A good example is last night on the buy out rumor. a lot of good people believed that they were going to make a killing. (no it wasn't Ron nor anybody else from here) This time it was one of the news services I won't even mention.( I was lucky last night, I read the post and some gave me the idea to sell in the AM, and buy it back later) The idea is above, research, and read the informative SI post. You will see as I have that most of the people love to be the first with new news,you will never need a paper again. (Try it some time ask a question, even if you want to know how long you want cook a lobster tail.)
The example with AOL isn't the best but I think you will get the idea. There are plenty of stocks to look at, that have far less risk in my opinion.
I could, like others go on and on. But I would say there is a nice chart and tech thread around here some where,but they make me feel as if I missed High School. I guess that's why I'm a Peter Lynch fan.<g> The only thing that I would add is to look at the sectors of the market that are doing well, if its paper don't fight it. look at those charts. What ever stocks that were in today doesn't matter, as long as we meet our own goals.
Good Luck, and I hope your investing is as prosperous as mine has been. (but keep it fun) Most have enough stress at work, this should be a release from that tension. After all were doing it so we can retire as soon as possible aren't we. (Speaking for those that aren't )
Regards Rg
iqc.com
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