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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: tekboy who wrote (25606)	5/31/2000 9:33:00 AM
From: mauser96	Read Replies (2) of 54805

Your experience with limit orders has happened to me too, so now I usually just watch, then place orders at the market. What would seem to be a significant price change on one time span (hourly) usually becomes insignificant on another time span (years). I shouldn't have said "start dollar averaging" since I've been doing it for a while. I was really talking to those who were still trying to time the exact bottom. My usual market approach is LTB&H with the majority of available funds. This nest egg remains in stocks no matter what. I usually have more cash than most members of this thread. When I get the feeling that stocks are very speculative, I start some dollar averaging selling. After stock prices have collapsed, I start some dollar average buying. Thus I'm almost always buying and selling both too early and too late. The times I am buying and selling tend to be periods of volatility, thus making dollar averaging work better. In other words I'm looking for extremes on either end. Buying is easier, because selling panics are due to fear, which is easier to recognize than greed. The amount of cash I hold is strictly a gut decision- literally whatever amount makes me sleep well at night. And no, I'm not always consistent. Since the rules of the market are always changing I'm not sure consistency is a virtue here. I try to keep Ralph Waldo Emerson's quote in mind: "A foolish consistency is the hobgoblin of little minds" Dollar averaging can also give you bragging rights. "Yes, I was buying stocks right at the bottom" You don't have to mention that you were also buying them before and after the bottom... <<gg>> Mostly I rely on subjective evidence about market extremes, but Martin Zweig's book "Winning on Wall Street" has some very useful information about objectively identifying major change periods.

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