Hey there brothers, sisters et al. Today INTC is up what, about 4%? I agree with Jury re the tech analysis thing and colors and lines, having lived the experience, and with my gonads in a vise on many occasions ~: ) Fair enough to say that charts keep track of historic price movements. They don't however predict the wild and wooly natures of the bucking, fighting, clawing bulls and bears. This is not to say that charts and so forth are useless, but often they come darn close.
A question: Are we so arrogant to believe that we can actually pick a stock's exact bottom or top, much less the time at which that will occur much less the date?!
If we are honest with ourselves, and educate ourselves as to the movements of the markets and our favorite stocks, at some point we must be able to distinguish an appropriate entry position. Then we must act on it (money in one hand, balls in the other). Either we are right or we are wrong that the stock will go north or south (long or short positions respectively) from where we intended. [in current conditions I would surmise that we are near the bottom with all the negativity about.]
If we determine within certain parameters that we are wrong, we must invoke a contingency plan: average up? And how do we average up? To keep it simple, maybe we buy at X (initial) so many shares. If the stock goes up, then fine. Maybe buy some more. If we go in the wrong direction and we are at Xc(contingency), say 5 or 10 pts lower from X we buy another number of shares. And then perhaps we have a third contingency point and so on. [basic money management here.]
If we were unable to make a profit at X, perhaps a strategy is to take only the profit generated at Xc, and break even at X, or use some other average to generate a profit, in line with the judgements we have made.
Another method/plan for the simple/less active/lazy position trader: set a 12% stop loss for your stock, and take the loss if it should materialize -- if you need to look at the stock, do it rarely, otherwise hold it forever. Much less stress this way.
Yes brothers/sisters we are in a period now when no sane person wants to buy our unsexy Intel stock. How ugly can our baby get? Will it become more hideous with further beatings with an ugly stick? Will a trend come into place that is not a bull trap? Only time will tell.
A most humble
it
"A woman's heart is
like a campfire.
If you don't
tend to it regular,
you'll soon lose it."
Texas Bix Bender |
