My strategy, point one:
Before my buddies start showing up for the picnic, I said
to my wife that I was going upstairs to start putting
together my strategy post. She thinks I spend too much
time doing this and that "I think this is just like Las
Vegas, you are all sitting around a table playing craps,
you're all chatting it up, you occasionally take a break
to go see a show etc". Yes! That is exactly what it is,
I said back to her. Of course there is a little bit more
to it than that, but that is my first point of the strategy.
The first rule to my strategy is that this is gambling
money. You don't trade with savings, you don't play with
money that you can't afford to lose. As far as trading rules,
I try to go for big gainers--100% in a day, I may have to
hold a stock for awhile, but when it pops, it is the kind
of think I expect to do at least 100% in the first couple
days after the news is out.
I wont go much into trading rules, I am no great experienced
trader yet. I still make a lot of mistakes, I still get
too emotional. In general, I tend to get out too soon.
However, I do a good job of limiting losses so far, and
that is probably half the battle.
Okay, I have said that I believe trading is just gambling.
Also I've set down a few rules I try to stick to--
for instance, try to average in and average out, also
limiting losses to 20% is good. You obviously don't average
in and out on daytrades, probably need to keep those to
only a few a month. I'm usually fifty percent in cash,
that helps to nab a good daytrade--you would not want
to have to sell something you are holding just to nab
a story stock.
end of point one, if there is anybody on the thread, please
feel free to post some feedback regarding this first point.
The next topic will be about the nonsense the Mutual Fund
companies are spouting--the magic of compounding. Eee gads,
I will have a field day with that one, but I need to put
it to paper and do a couple re-writes. It is the most
important point I have to make lately--Do not expect to
get rich by getting into the market and by compounding at
11% for thirty years!!! |
