Guy Gordon, back at the ranch: 1st, I am a happy camper
at JDSU. An ideal trading stock: excellent fundamentals,
good, but not excessive beta; great outlook, a near monopoly
position, in other words, a stock you could live with for a
while if by any chance you made the wrong buy while the
market pulled the rug from under you. I love it.
Also in these times were more and more investors are
climbing on to fewer and fewer stocks, JDSU is at the
leading edge: still tons of people hoping aboard.
It has a large daily volume, so it is more difficult to manipulate by
large Institutions to their advantage.
Trading JDSU is very easy. It has a 5 to 12 point intraday
price fluctutation.All you have to do is play those points
with a fewK shares at a time and you can ratchet up quickly.
However you have to buy when others are dumping and sell
when all are trying to buy it. If you look at the daily
price/volume activity you can see when this occurs and time
your trades accordingly. It has to be done quickly.You have to
know ahead of time what you are willing to take so you
can execute rapidly.
You need to be cognizant of items that will affect the market
such CPI coming out and decide what are the chances
that it will go to your favor.If I am uncertain, I will only buy 1/2
and save the other 1/2 in case I guessed wrong. Then I will buy more at
lower prices which then when price corrects up allowing me to unload
and re-enter at a lower position.
I only trade 1 or 2 stocks at most a day: You need to watch all day
the tape and price action, analyze it technically and try and make some
sense out of it. Believe me you can>there are traders
behind these buys and sells, nad I am telling you, after a while a pattern of
trading behavior emerges which you can turn to your advantage.
In fact it is predictable. Most of the time, stock is down in AM ( buy )
and up in PM ( sell ). So what if you miss one day?Or 2? There are
265 days. Live to trade another day.
With the comin of after hours trading I think heaven has now
opened for daytraders and manna is fallin out of the sky:
Durinf LU's debacle 2 weeks ago you could have bought
JDSU for $142/sh !!! Or, NT, the leading optical networker for $74
a 35% discount from it's high of 110. INTC was down to
83 last Tues for a few minutes. I mean if you are long a stock,
you don't know when a LUCENT trick will be pulled on you.
I am ready.
I guess what is missing from all this is the pleasure of being able to say
that you own several companies. The pleasure of displaying
a garden, a portfolio.
Well I am past that. I am a gardener so that I get all the " plant and hold
and wait till the grass grows " <GG> pleasure I need I get over there.
There are actually a few good and more financially tangible reasons
IMHO why to me this makes sense.
The market for me is where I need to make the maximum profit in the
least amount of time. Time is money. I do not want to waste time
waiting.
Secondly, this is a treacherous market. Fewer and fewer stocks and you
know, after 9 years we are going to hit the coast any day now.
I DO NOT intend to sit for 1 year with stocks sitting at 50%
of the buy price hoping for another take off. Yeah it will come but I
am impatient.
If we do hit sand, I'll be ready: I'll be in cash and ready to buy
during the crash. Always do what Bernard Baruch said: " Buy when
nobody wants it and sell when everybody wants it ".
Now if the market crashes, ( note, I said , if )
then I will buy back big time a basket. Hold it until they go up 20%
and then start daytrading the profits.
And finally it is fun. I love trading these stocks: JDSU, QCOM,
AOL before, YHOO,ICGE, to name a few. I don't care what they make
or sell. I just look at 10 -15 +/- intraday point fluctuaion.
Don't be shocked that somebody is doing things differently.
If we all looked acted the same, this would be a boring world,
cheers,
TA
Message #4760 from Guy Gordon at Jan 19 2000 5:31PM
Tunicia: Don't let the cheerleaders chase you off this thread. (But I can see by the confident tone of your reply that you don't really need my
advice for that.)
The real reason for the post is to ask you what you base your daytrading buys/sells upon.
As for the rest of you -- are you so insecure that you need to hound other people just because their investing decisions don't validate your
thinking? Well, get used to it. Somebody sold you that stock. And you'd better hope that somebody will buy it from you, too.
|
