Believe me I am no expert in calling stocks. However, I have learned through many costly mistakes, what works best for me. Just because one way of trading works well for one person, it does not mean it is the path you should take.
Read, Read, Read! Its the cheapest way to learn. Buying and selling stock on the blind is so damn expensive.
I use only 3 methods of trading. My favorite is channeling or commonly know as rolling stocks. One may buy call or put options using this method, personally I try to stay away from options. They are good only for a specific amount of time, which is the risky part. However, the price you pay and or may lose on a particular stocks option is minimal, compared to the full price of the stock. Then again you don`t tie up as much of your $`s. I follow rollers that invaribly repeat themselves. Many factors to look at when purchasing as you know, PE ratio, sales, book\price, violatiliy, etc. Here is one of my favorite websites for rollers: mylink.net
I also like playing with momentum stocks. for instance your OVIS stock would have been a perfect candidate. However, I follow The Waaco Kid and he forwarned his "posse", from getting involved in that one, as you know. I wish I didn`t follow his advise, because I would have been out twice in two days with almost doubles. Momentum stocks should be sold at end of day, since we have very little influence, (cannot trade) when institutions are still trading. Selling at days end limits your risk, because a stock may gap up or down in the morning, leaving you where you orriginally started, or worse. If you cannot watch a stock tick for tick you may not want to play with this. The Waaco Kid has picked some great winners for me in the past, as well as some dogs. You can join his Posse, for nothing, however if you pay your $20 a month they constantly sending you info. on stocks in general or APB`s on their hopefully future winner. Since his following is so large, he himself may set the momemtum for a particular stock. Check it out. netcapital.com
Just for shits and giggles I like to bottom fish. Prime example is this one, UMSI along with several others. I read about it in the Clearwater business section and purchased it on Monday, buying on momentum. Sold it that day for profit. Now that the co. is gyrating like crazy and can`t find its support, its a good possibility that it will dip down to a bargain. My limit price is at 3/8`s, you never know! If it takes at a all time low, it normally/hopefully will spike back up the same day, and a prime candidate for selling. Now why can`t you bottom fish for several co.`s, and when one takes you may in for some nice gains? For some great reading try out Wade Cooks books/tapes, you don`t have to use his methods, or buy into his seminars but the fundementals are there. Also there are several daytrader books outs. However, you just don`t go jumping into this without knowing your stuff. daytraders.com
Like I said, this is not advise, this is how I do my trading. Please be careful when following advise from anyone. You must do your own due dilligence on all trades/co.`s before you invest. Read, Read, Read!
Archie, what is going on with UMSI?
Goodluck,
Gary |
