Bopster:
Choppyness is now a way of life in the market. Analysts are having too much fun tanking entire sectors with
their suggestions. Back in 1997 or 1998, when market was much better, I had a terrible time finding a momentum stock that would not collapse-tried a lot of them adic, qntm,(hdd), wdc, and jbil(jbl) and about 30 more.
And even in the good times, the best stock can look like a pig for months before it gets rolling again.
Even Qcom and Jdsu sank for a few months after their first run-up.
Generally then, one should try to concentrate on particular stocks and avoid the futility of predicting public
acceptance or market direction. We cannot disregard that entirely, and would be rich as sin if we had got out earlier.
With this volatility, sell stops are a problem for me because I feel part of the game is to dip the stocks and take them out -sometimes in just a few hours. That has to be done, because if one could buy stock and immediately put in a close-in stop without losing it we would all be rich as sin.
Mental stops probably better.
In order to find and hold that unique stock that is guaranteed to double in a year and hold that gain we have to find something unique to keep the faith for weeks or months in the down times. Dell thread had that in aces on the way up, as did Qcom. BRKa has W. Buffett to hold things together.
Mishebear has had the right idea for the times, and if he could proceed without fear and stay short, he could now be rich as sin.
My second holding, Ally, has done well but you can see from the volatility its causing problems. I got stopped out a few times due to fear of losing and then had to build back up.
Some faith would have helped, a support group that would skin out every bear that came along and
make Bearbeques. Then we could all be rich as sin, especially someone who can manage volatility better than I do. A L Reagan of the Dell thread could do it.
siliconinvestor.com
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