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Politics : High Tolerance Plasticity
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To: Warpfactor who wrote (17949)12/2/2002 2:58:44 PM
From: kodiak_bull  Read Replies (1) of 23153
 
Warp on ROOM.

I don't believe you can, at this time make a target price for ROOM on any technical basis. Calling it at 90 seems to me like choosing a lucky number on a roulette wheel.

The best thing you can do is review your chart and try to first 1) lock in a no-loss position and 2) lock in a small profit, all the while you are letting this winner run. You should write yourself a promise that you will sell on the open the day after it closes below the 20 dma (which is a rising line) from the day previous. Adjust it every day and discipline yourself. Once you're to breakeven, good. Once you get into automatic profits, even if it's only 3%, good.

You can also use real stops, again, set at a fixed percentage of the previous day's close, say 95%. If the stock trades more than 5% below the previous close, you get stopped out 1) even or 2) at a small profit or 3) at a larger profit.

The important thing (this is the one big thing) is to have a system that cuts your losses short while allowing your gains to run as far as possible. On ROOM, you're faced with a conundrum. What if it has simply followed this rally up like every other stock and will collapse with all the rest? Securing gains is the most important thing you can do (or limiting a loss) and you should start immediately.

JMHO,

Kb

P.S. This system will allow you to ride ROOM all the way up to 112 and then get stopped out at 106 or so (much better than selling at 90 for some reason and watching it skyrocket).
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