John, I only trade about once a week. If I have about 30K or so then I like to find a 100$ stock that I feel will go to 200$. It has to be marginable for this to work, which excludes a lot of candidates unfortunately. I buy into the stock on margin on a down day and add about 4 or 5 times during the runup and then when it hits my target sell. Thats the only way I can get a 4 or 5 bagger on my money but it works for me, and only for small $$ amounts.
It probably sounds glib to say "find a stock that is going to double" but its easier than it seems if you don't look at anything but momentum, and keep to the emerging plays. Right now I'm in a bunch of cash but for example if we get a decent correction then qcom might be a good candidate, or dclk if it falls enough, or some of the dsl plays like awre (don't know that stock just a guess, sure has momentum though). Priceline and etoys won't work because they aren't marginable.
I was a pretty good speculator in the past but once I started to get any serious money my style didn't work anymore, some of my picks weren't "quality" enough, float too small, tax issues etc so I have another acct for core holdings. Thats why I think most of these people (Glenn, etc) are better investors than I, they are working with more money. They also don't speculate as much, and for 20K heavy concentration and margin is the way to go. |
