That is a great post Dave, I've seen it before somewhere, and I think I used a line or two from it in my "reminders" post.
What works for me, is using a bit of both strategies, that is taking full advantage of a momo on one I'm in, to reduce risk/reward, then sit long with free, or at least very cheap stock, and use the initial investment and/or profits, for the next one.
But it's also easy to get the "trader mentality" even with the freebie stock. Impatience on my part, watching free ones sit and idle, or drop back, and then selling them off, only to see them take off, hours or days later.......has cost me literally hundreds of thousands of $$ in money left on the table.....so far this year alone.
And the worst part is, once I've sold one off completely, some psychological barrier, often keeps me from jumping back in when I should, and I'm off looking for new ones. |
