To all. . . . William, There is another factor that comes into play here. Many of those here tell me they are playing with just 500 dollars to 5,000 dollars. So with that amount, it is hard to buy 1000 shares of more than a few issues. If they take a month to mature, then they miss 20 other potential rocket stocks. . . so it becomes a sanity thing. . .watching those momos going by. . .Next thing you know, you are waiting until sufficient momentum comes in, then you jump in for whatever pop is left. Of course this goes against the methods we are promoting, but I can certainly follow the thinking.
So as daytrades or momentums hit 600 percent in one day, they become chocolate fudge cake to a dieter. So you buy a lottery ticket for just 500 dollars, and because you don't have momentum trading equipment or experience, you accidently buy the peak. 20 minutes later your 500 dollars is worth 270. The roundtrip commission on these small trades can take another 10 percent . . .and can eat away equity like cancer.
Make a mistake 2 or 3 times per month and the gains made by the swing trades of undervalued little gems nullify the losses from jumping on a momo too late. And you have a break even. I have talked with some here that have had such problems. . .the DISCIPLINE of trading is the same as the discipline in gambling. You MUST put profits away as fast as you can get them and never not put profits at risk.
AND you must trade the way you KNOW how to trade. . .and resist the temptation to trade as someone else tells you. All over SI and elsewhere, there are those [front runners] that tell you to buy WXYZ and triple your money in 2 days. Never buy anything on what someone else says. . . always do your own DD and come to your own conclusions.
It is YOUR money. . . not theirs.
Rande Is |
