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Appreciate your informative post. Yes investing, trading is an art, one needs to become one with the machine and flow of information. Emotion is a killer, perhaps when DIGI held, I should have bought more rather than selling off when I'm going out of town. Averaging up, their products are good, but with the magnitude of the downturn there could be unknown risks. Too often these stocks come back down after the bounce. I'm trying to avoid the risk of becoming a daytrading junky, the probability is lose in the long run.
My approach is to only trade special situations and use money in longterm 'flat' positions that I'm following closely. In the example I was playing REDB and ESST. Moved out of these and bought DIGL, sold DIGL and moved back, ended up with more at slightly less both ways. Approach allows me to back out of key stocks when it appears they will come back slightly and take advantage of high risk trades.
If right, end up ahead both ways, if wrong end up even or slightly down. This seems to work for me in that it averages out dips in large longterm positions and keeps my emotions in check. Your point is well stated, to day trade as a 'junky' invites losses just as going to the track.
The 'art' part of trading is to find a method that systematically fits ones emotional demeaner, where actions are taken quickly and consistently. The part missing for me is better flow of information into my cortex, my hypothesis is the Cyper-Trader may 'ramp-up' the cortex feed. Overload is a concern, and your strategy to paper-trade while the neural systems stabilize and datafeed processing and manmachine interface integration occurs, is the proper approach to take from a scientific standpoint. System testing is always appropriate before going 'live'.
More Wednesday next. |
