Jacob, thanks for your thoughtful reply.
At heart, I am a trader. My trading time varies from few hours (rarely) to days to weeks. Longest I ever held a stock is approximately two months. ( In my children's accounts I have held securities for over two years). Recently, I divided my assests in two separate accounts ( I had done this in April also but transfered the securities and cash in October to cover margin).
In my long term account, I have 60% of my assets of which amat is about 60%. I know that is a lot and is risky. But I am ready to take profit or write covered calls with each 20% jump in value. This account has no margin (not allowed). If the charts break down eg P&F supportline. I will bail out. (no Enrons for me unless some news overnight plunges amat or the market) If need be I am willing to hold the securities for a very long time, whatever that means.
My short term account: I started with 40% assets. I trade amat, nvls, mxim, lltc, altr, xlnx, sunw, orcl, emc and itwo actively. I may be all cash or margined, depending on the stock and the day. I generally keep stocks from few days to few weeks. I have held txn calls for two weeks. It is getting to the upper limit of my time range. I am willing to keep these for two more weeks (may be). Right now the market looks positive for the near future.
I will be looking to take profit soon. I will use 10-20% drops for trading entries.
Thanks again.
Kdavy |
