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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: im a survivor who wrote (30002)1/26/2001 9:54:58 PM
From: Jill  Read Replies (2) of 65232
 
Keith:

Probably the best idea for preserving capital is figure out what the loss is you're willing to take (5%, 10%) and put a sell stop good to cancel order in to protect yourself. That protects from the sudden gap downs.

I still don't do this. One reason is the market is SO volatile the thing can gap down and gap up--as in extr, as you pointed out.

I liked Ed's posts about basing. I have been choosing stocks like that for my buy-writes. CMRC was doing that at the time of my buy-write (19-22 or so--it droped to 17 1/2 when I did the buy-write). I couldn't have predicted the earnings runup--other stocks have gotten killed on their earnings reports. So that would be gambling.

And PALM--I have it in my IRA at 24 1/2. You could say it's trading in a triangle and that could be considered dangerous, but I see it basing in a range, very comfortably. So I did my buy-write on that. And true to form it has not made wild moves at all this week but been nice and steady.

ATML's a good one too, a sleeper stock in a way, not glamorouis, just a good bizness
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