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Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (13501)	1/25/2000 6:42:00 PM
From: TATRADER	Respond to of 59879

the only advice a trader like Cooper would give you on a stock like VRTL is following it with a trailing stop..When your stop is taken out, be happy and move on to the next one... I look at this trading now as a business, I go to work part-time, and the end of the week collect my paycheck to give to my wife..My goal this year is to have enough money to have a sizeable downpayment on a new house..My secondary goal is to have 80% of my trades as winners and a certain amount of takehome at the end of each week..You need to set goals, and keep your focus on those goals..Some weeks I get a Christmas bonus, but most weeks its just a steady income...If you can get a steady income, no matter what the amount,you are a successful trader...

To: Paul A who wrote (13501)	1/26/2000 12:31:00 AM
From: Mike Sawyer	Read Replies (1) \| Respond to of 59879

Paul A...I also left money on the table with VRTL and SBAS. I made a very nice profit on both but missed the meat that came later. It caused me to think about some strategies that you might want to give some feed back on. On these popper plays, they are poppers because the stocks have been at the low end of their cycle and something has jerked them into a major trend change. Since what ever happened was big enough to spike the stock well beyond it's base I must think that there is enough there to take it back to it's high or higher in the future. The big question is...how far into the future. Since i do not know this I can only go by charts. This is fine but I can also only watch and trade x number of stocks at a time. With this the case...how can I trade all of the poppers that go balistic? Well, I can just keep them on a watch list and that will catch many of them again and again. But one thing I have also thought I should do is this... Let's take my VRTL and SBAS trades from the first time I traded them. I traded 3500 shares of VRTL around 2.50 and netted about $1,700. I traded 4000 shares of SBAS around 2 11/32 and also netted about $1,800. Now after I sold I could have rebought slightly lower on each one. What I am thinking is the smart thing to do is take a portion of the profits and reinvest them into the stock for a longer term hold. What if I had taken 50% of the profits and rolled it back into the stock on the pullback or just not sell the number of shares equal to that amount. On VRTL I might have ended up holding 400 shares for free and still pocketed 600-700 bucks. Same with SBAS. So say I had held onto 400 shares of each one. VRTL hit 20 which would make those 400 shares worth $8,000 and SBAS hit 15 which would be worth $6,000. That means I would have only tied up about 50-60% of the profits I had made and left it sitting in stocks that had shown major trend changes. And for the reward I would have turned less than $2000 reinvestment into $14,000. Now of course not all of these stocks are going to do this to this extreme but most will return larger profits. Some of the other poppers were DWCH and CSRE. They have not done what SBAS and VRTL did but they did not do bad either...and they are still waiting for their day in the sun. What do you and some of the other people think about this. I am sure many people already do this. I know that David Hayes makes it a habit to park free shares in his account when he likes the long term outlook of a company. The thing that makes a popper special is the fact that it is a popper for a big reason...not just a dead cat bounce. These are full blown Nasdaq or small cap companies that have reached the end of their down cycle and have proved it to the world by spiking off the bottom. Any thoughts...or improvements on the ideas?