e-mail..EVI and queries about trading methods in these markets..I I mentioned that yesterday but I will emphasize points that helped me to trade well today when the market was down 170-115 points.
EVI... repost..
merger of drill-pipe make EVI and Weatherford Enterra. It rents drilling tools and manufactures artificial lift and compression equipment. These last 2 may not move just yet, but they are very cheap. Any rally in the sector, these will move.
from yesterday's post..
Another thing you are going to have to rethink some trading habits you've grown used to. You can't be holding positions over 2-5 days with this market climate. Go where the most beaten stocks are, the bottom quarter. Look at REXI, PSQL .....
If you came into the market today fully invested you could not take advantage of the nice gains in the small stocks.. If you sold this morning, then you sold into weakness as most stocks gapped down at least 2 or more points. What is the point then in buying others?
You have to go with the flow of the market and change your trading habits accordingly, like a chameleon. Not your entry methods but rather your exit and holding habits.
Rigid trading tactics at worst will kill your trades or at best leave you on the sidelines. Daytraders have reputations of scalping for 1/8 to 1/4 point. I've never done that in 2 1/2 years. Add up the proceeds of a daytrader day after day, think about starting the day in cash and taking advantage of whatever develops, rather than sweating it out hoping your position/short term trades will not tank because of yet another development with Asia, the President or most important, earnings.
It's not to say we don't hold.. Sure we will hold. When the time comes to hold, you will know it.. Don't push it.
Don't ever buy a stock because its going down and you expect it to reverse. It might have wanted to reverse, but a bad market climate that day will have other plans for your stock. I have trader friends that picked up some MER and MWD after its first large fall, thinking they had bottomed. I am still buying puts on those and CCI..
I think they had one good day before it fell a total of 20%.
That's exactly what I did today. The severely beaten down stocks will be the first to rebound. In some cases they are relatively strong stocks dragged down by the market climate, in other cases a rumor circulates that doesn't necessarily have its basis in fact. Most of the cases, however, are shortfalls in earnings that have undeservedly sliced a stock in half or in the case of REXI,DMMC in quarters. |
