Kate,
Every now and then when not following a trade I, like others here, will venture over to bullish threads such as "Q Buy Range" to get a feel for how the so-called clowns are viewing the world. It was during such a scouting mission that I was struck by the posts regarding the recent fall of the Q.
Many of the people on this thread often remark in one way or another how one is attacked on these bullish threads when one argues against a stock's continued appreciation; whether or not the argument is cogent and humbly proffered.
I do not have an informed opinion of Qualcomm as a long-term investment. The story seems very good to me, but the chart screams "avoid" for now.
My only advice to you, and I offer it humbly, is:
1. When you buy, do so with a clear idea of where you will abandon the position if it goes against you. Be ruthless in this. The proper approach is to enter a stop order after you are in that takes the decision out of your hands.
2. When the position moves in your favour, keep moving the stop upward to lock in profits. The more in moves in your favour, the more slack you can be about the tightness of the stop.
These suggestions, in one form or another, date back to at least the invention of the printing press. They are repeated in almost every one of the hundred or so trading books I have read. That we have such trouble accepting these admonitions is a testament to the human condition and, I suppose, the power of greed.
The part about "good people getting hurt" is a general comment about the people who buy into a story late in the game and, because they do not follow 1 and 2 above, are left holding the bag -- hence the term "bag-holders".
It was someone else who made the reference to "Minneapolis boy". If you respond to that specific post, I am sure you will get satisfaction.
Best of luck with Qualcomm. --Allan |
