Far from writing it off, I intend to make lots of money trading IMNX. I made 21% this last trade. It's just that I'm afraid to hold a 900PE stock for years at a time. When the next big market correction comes, I might get scared out at the bottom. With a large-cap stock like MSFT, I know it'll come back up after the correction.
I use trendlines and moving averages in my TA. I only buy stocks with positive momentum, both short and long term. I sell the small-mid-cap stocks when the short term turns negative.
With a great company like Immunex, I'll be back for more. Once nice thing about the market is that it has room for all kinds of strategies: long term buy-and-hold, channel trading, value investing, and even day-trading.
I don't see any reason why day-trading should be "bad" and buy-and-hold "good". They're just the same thing on different time horizons. Use what works for you, what you have the time for, and what fits your psychology. |
