Very long post, Part 1 of ? re: NSCP (a modified rolling stock)
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OK. Walter, as I promised to you in my earlier post, this is the way I play this:
1. I do lot of research in a company and make sure they have a good product and potential.
For NSCP, we know that they have a very good product and a market share of 80% in that area. I'm aware of MSFT's IE 3.0. I don't like to be too attached to a stock. I will play the game now and if some thing goes wrong w/ the stock, hopefully my loss will be minimal (one time loss compared to several gains) and move on to another.
2. I monitor the stock for some time and try to establish a pattern of movement.
The following message # 39 will explain this better:
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To: Diane Richard ( 39 )
From: Salim Ilmudeen
Sep 22 1996 11:32PM EST
Reply #40
Hi Diane:
Thanks for the info.
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To all others I promised to reply:
Sorry guys, I'm one of those who gets super busy some days and nothing to do in some days. I'll get back to
you guys eventually. Thanks for your patience.
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OK. Here is one of my favourite plays. This is not "really" a rolling stock. But, we can play this, if we
modify the game plan little bit.
The stock is Netscape; Symbol: NSCP-NASDAQ
Here is how I do it. NSCP has bottoms at 36, 42, 48, 52, etc. and tops at 48, 56, 64, etc. NSCP does not
"rolls" b/w a certain range. It "rolls" b/w a top and a bottom. It is a very fast moving stock and you have to
watch every day (if not every hour). I usually monitor the stock very carefully and when it "pull back" to a
bottom, I become "alert". I will stay on w/ the movement until it becomes clear that it is bouncing off the
bottom (some times it go thru the bottom and in this case I'll wait for the next bottom). As soon it becomes
apparent that the stock is moving up, I'll buy some shares and let it run. I apply the same principle when it
reaches a top also. I'll not sell it until it is clear that it is starting to go down. This way I don't loose any good
run even though I'll lose a little bit when it reverses from it's high.
Look at it now. Friday it closed at 50 7/8 (5 3/8 gain on heavy vol., 5 mil. shares). The current run started
from 36 w/ a pull back b/w 46-42 range.
NSCP gain/lose 4-5 pts in a day some time. So, we have to be extra careful. Always, use a small percentage
of the portfolio for this type of investing. If I gain $1000 in a week that's great. However, if I lose couple of
hundred bucks, I'll cut my losses and get out fast.
Please note that this does not work to every body. I play this when my work load and other commitments are
minimal so that I can concentrate in this game. I consider this as a very speculative/exciting game. Big chunk
of shares in my portfolio are very fundamentally and technically sound companies.
Oh.. yeah.., you all know that NSCP has a very good product and lot of research materials available in NSCP
unlike most of the rolling stocks.
Comments are welcome.. Remember, do your own due dilly and get rich s l o w........
--Salim
P.S.: Does any body know a good, cheap real time quote server?
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3. I don't try to buy at the bottom or sell at the top. It is hard and I was never succesfull at that. I buy when I see a sign of uptrend and I sell when I see a sign of downtrend. I'll lose some profits this way, but it works for me and I usually end up with a small profit in a short period.
To be continued..... |
