Stock Attack -- A Complete Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Stock Attack -- A Complete Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: donald sew who wrote (28973)	9/4/2000 12:12:47 PM
From: Casaubon	Read Replies (1) of 42787

Well, what O'Niel is really saying is this: before a company puts in the really big move it telegraphs it by putting in a certain pattern (the cup and handle). The pattern doesn't just occur as a result of technicals; the pattern occurs as a result of fundamentals. When the fundamentals are set up properly, demand for the stock will be such that a cup and handle pattern will emerge (because of human nature hope, fear, greed, supply and demand). It is not "proper" to "invest" in a stock until the pattern emerges because the risk is too high. It is not until this pattern emerges that a high probabilty trade can be undertaken, with a downside risk well defined by the pattern and the upside potential only limited by the actual resultant growth rate of the company in the months ahead. Firstly I have to ask, is he saying that the majority is looking for the big call or is he saying that investing should be based on the BIG CALL? So, I would say O'Niel is defining the proper point to invest when one can anticipate an upcoming big move with a well defined loss action point on the trade. This results in large moves to the upside over relatively short periods of time or, if wrong, small well defined losses over a short period of time. Even if you are only correctly identifying the pattern 50% of the time the outsized gains should easily overcome the limited losses on the trade. He also defines market action points which suggest when to lock in profits. So, his style is not buy and hold forever, rather buy when large gains can be anticipated (pattern recognition is necessary) and sell when the market action warrants it. He also espouses the virtues of averaging up (not down) and holding onto winners longer, while selling losers quicker. If the purchases were made at the proper time the 8% loss limit should keep one in the trade the magority of the time (but that involves really identifying the proper "pivot point" of the trade very accurately).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next