OT diversification: Sam, I am guilty of the same disease ( lack of diversification). I believe that diversification may be good strategy for the long term investors, but for traders it does not pay to diversify. To maximize profits via trading, here is my theory (it is empirical so it may not be a theory) but a set of guidelines.
1. The company should make money and lots of it.
2. It should have a unique product line that offers a great barrier to competition.
3. profit margins should be high (??)
4. should have a continuous record of growth.
5. CEO's and PR department should not drive the stock price, let the record speak.
Once these criteria are met then f
1 follow the charts.
2. limit your losses (most important), be ready to jump ship if the ship is not going to your destination
3. don't get too greedy
I day trade, weekly trade and monthly trade. I rarely hold stocks more then few months.
( exception: I have some amat stocks (100%) in my son and daughter's portfolio since oct 2000)
My favorite stocks are: first choice in order of preference: mxim, lltc, amat, altr, nvls, klac, xlnx
second choice: amgn, sunw, orcl, itwo
on the horizon: emc, csco.......
Currently, I am holding 1000 sunw., last week I was holding mxim, lltc , amat, altr 125% of my account (margin)
Here is my mantra, focus, focus, minimize losses; I use all avenues, options, covered calls, naked calls, shorts, longs but > 80% of trades a stocks and long.
aapne Hindi kahan seekhi,
Namaste!
kdavy
I am almost all cash right now except 1000 sunw ( target to accumulate 10k sunw over next two months) |
