You'll never learn because there's nothing to learn. Trading is a negative expected return game. The more you trade the more you approach the negative expected return. That's on cash. Margin is exceedingly worse because you can't ride it out. You must sell when wrong. When are you wrong? Can't be known. Don't let the theory of runs pull you off Ulysses' mast, you'll just be bagged. Buy, hold, and trust.
If you do that, I assure you that you will become rich. Absolute promise. You're not being objective about what you're doing, because even if I prove to you beyond a shadow of a doubt, you won't believe. Review Lazarus in the New Testament. Read, "Reminiscences of a Stock Operator", by Jesse Livermore. Believe what I'm telling you. If you don't, you have a drug problem called, "the action".
I especially don't like that you wrote, "This stock has got to bet(sic) back to 18 or so". I know you don't mean that you are depending on that to occur, it's just more evidence that you're hooked. It's a rational expectation for it to get back to 18. But that may not occur until 1999. And you might see 8 before. Many OTC stocks are in major downtrends. They deserve a bounce, but will they break the downtrends? Eventually. But this is a murderous market for bull or bear traders, even worse than normal which is merely disastrous.
I own 100 shares of DIGL. This is the smallest position I've had in any company for 20 years. I bought it at 19, when the price briefly touched the uptrend.I didn't sell at say 16 because I bought for fundamental reasons and not the fundamental reasons you hear these fool analysts make. Or, some third rate clown like Cabot. Those types are real clever but you don't make any money with their skill. I've been doing this long before they got into the biz.
I don't buy averaging down, so if DIGL puts in a base and eventually crawls out of the hole, I will buy at 19 or above if fundamentals improve from when I originally purchased. It actually doesn't matter at what price you buy, what matters is if the company is really putting together an interesting story. |
