re: Finally how does $cost averages reconcile with your stop loss max at 15% or whatever it is.
It's 10%, which is hard to live by given the volatility, I have been giving stocks more then that. The trick to all of this looking for bases and buying once they have completed them. Which I have said time and time again as the best way to buy a stock. There is no point in buying them unless they have worked off the sellers unless you are trading. Looking for stocks that have started the base building process is a good way of finding stocks to buy. It's important to try to understand we are in the cycle, in individual stocks, sector,the whole market and economic wise. Some the keys to watch in trying to understand where we are at in the cycle are M1, M2, M3, inventory levels, housing and manufacturing, unemployment is lagging in my mind, and how banks are lending.
Using SI as an indicator for things to look for near bottoms.
I'm getting more and more fighting out of the shorts on SI, they are in the defend mode, much like the bulls were for a long time. The Bullish voice is lonely one now. I like it. I also know that bullish side of the coin is so much heaver, that once it's flipped, it will be hard to flip it back.
Be looking far and wide, tech is not the only thing to see. |
