As for the 5% list:
One of the guys that works for me asked me what to do with a $1000 windfall recently. He is planning on buying a house in a year. I asked him what risk he was willing to take & he said "none". I told him to put the money in the bank. He shopped around for CDs, and the best rate he could get was 5% per annum which of course he has to pay taxes on ($50 gain here).
This started me thinking. If I can manage to move my money around for a consistant 5% profit after commisions & estimated tax, in a week to month type of timeframe, I would be doing pretty good.
So, now when I buy a stock (in general), I place a limit sell order for 5% net the next day and wait for it to go off. The more these go off, the happier I am even if I am missing out on the 2,4,8, ... baggers that day and momentum traders make. I also keep my money spread out using another 5% rule. So far, this system looks promising for me considering my goals and constraints.
As for EAR & OAKT. I looked at all of the stocks mentioned on your thread & a number of others tonight. These are the two that I like for my style of trading. They don't have much momentum today and seem to have potential for a short-term, small pops. I like OAKT because of the book value and I like EAR cause, using my feeble TA, it looks like it is at a bottom.
I don't just blindly follow you Wayne, I read many opinions and at least try to do some DD before I buy. I do tend to like the same stocks as you -- the ones that fit my objectives at least -- and we will see how this works out for me. |
