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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Autumn Henry who wrote (82398)	3/4/2000 11:38:00 AM
From: marquis103	Read Replies (2) \| Respond to of 108040

Autumn. I'm responding to this post, not because I have some magic formula (believe me, I don't), but because I think you should realize that you're not stupid. You're reacting in the "nervous investor" mode that many of us less experienced people live in. The first thing you should do is stop beating yourself up. This sounds trite but each trading day is a learning experience, especially for people like me, who are trying to make a living at this. We are going to make mistakes. And it doesn't help that in the four months I've been at this, market volatility has increased markedly. I've given more money away than I like to think about because I got out too early. I try to comfort myself that J.P. Morgan said he got rich by always selling too early. It doesn't always make me feel better. What does make me feel better is realizing I'm not a mind reader, and if a stock's action is too weird for me to comprehend, so be it. Again, at the risk of sounding too trite, I only enter stocks I believe in after doing the fundamental analysis. If the stock starts turning against me, with no bad news, I usually hold knowing that no stock goes straight up. However, if I enter a stock that's running, or on someone else's recommendation, without doing any DD, I have to be honest with myself, if I take a loss, that I didn't prepare properly. I have also stopped trying to do too much trading in one day. If you expect to trade a lot, you do, even if it would be wise to hold. If you enter with the mindset, that you will only sell a strong stock when it reaches a point you've targeted, you'll be more apt to hold for the pay-off. That doesn't mean you'll always be right, but the odds will be in your favor. There's a lot more that could be said, and I know many of the more experienced investors on this thread will offer advice we both can use. I just wanted to say that the worst thing you can do is get overly nervous and mad at yourself, and take on the impression that you must be stupid because "everyone else is getting it right." We all operate at different emotional levels. Stay cool, go slow, do the homework, don't try to push a trade and make things happen, and for the most part, things will go your way. If one gets away from you, just remember what one of the analysts said this week on CNBC (I believe it was Mario Gabelli). "Every day the market presents us with marvelous opportunities." Russ

To: Autumn Henry who wrote (82398)	3/4/2000 8:38:00 PM
From: Bryan	Respond to of 108040

Autumn, You need to develop an investing plan that suits you. You're a smart guy and I'm sure you can do that. You are hitting on a common theme that makes it impossible for one trader to adopt to another trader's methodology....emotions. There are very few traders that will even talk about that side of the game, because it is one of the most destructive elements of trading (especially day-trading). And is this what you are trying to do....day-trade? Perhaps you should widen your horizons and "invest" instead of "trade". Another thing you might consider is allowing for more reserve capital so you can average down. Many of the great fund managers average down and up all the time. Over the long term, if the company fundamentals are sound, you will make $$$$ by "averaging." The new age of on-line investors is trying too hard to make a quick $$$ and that is really disgusting and it's one of the things that brings more volatility to the markets. For me that's fine. I have noticed that many many others are getting ripped to shreds trying to be on the right side of the intraday volatility. If you really want to capitalize on the volatility, then hedge yourself by writing covered calls. There are many good books and internet sources on "covered calls." One more thing: You really shouldn't believe most of what you read on the message boards as it relates to people's rates of return and respective success. Never let that kind of BS get you down. The only consistent winners in this game are the ones that make the markets and facilitate the trades....that's right the MM's and the Brokers. That puts you and me at an immediate disadvantage. Fun stuff, isn't it? Regards, B

To: Autumn Henry who wrote (82398)	3/5/2000 4:07:00 AM
From: swisstrader	Read Replies (1) \| Respond to of 108040

Autumn: Russ got it right (as well as others)...invest in what you know and believe in (and probably what you recommended to friends and relatives)...trying to guess a bottom or a top is tough even for the most seasoned trader and this is not trading based on belief in a co or mgt team, but more akin to going to Vegas trying to count cards or guessing red will win out over black...don't get me wrong, I've made loads looking for support, taking profits relentlessly and moving on to the next target all before you can say "easy money", but my REAL profits come ala the friends and family recs, and based on this, my sister and brother have enjoyed some 60% gains in the last 2 months alone...nothing fancy, low risk solid holdings...and because I like to "play", I have these holdings as well, but also play with momos, swing trades and some out and out trash....guess which is outperforming which?...my point is put your real cash into what you know and believe in (INVESTING), and your play money in the momos you have neither the time nor the passion to research and full well knowing that some will crash and burn and some will become the next VASO or JMAR or whatever...only 7-10% of my money is in the stuff I know is a bit on the risky side, all else is in my LT portfolio.

To: Autumn Henry who wrote (82398)	3/6/2000 8:22:00 AM
From: stan s.	Respond to of 108040

Off topic, Autumn, I hate axioms and catch phrases. I'd hate books on daytrading even more...if I'd ever read one. <g> A couple or more obvserations. Your remarks don't seem compatible with being a short term or day trader. At least not for now. Position trading seems much more suited to your style. You want to catch all of a stocks move? Then you'll have to let it ride. Take a position and watch it... You want to make 5-25 trades a day and win most of those little "ninny trades" and come out ahead almost every day? Then you learn to daytrade but you'll only be able to do that if you love it. Personally I do both but I especially like to daytrade, it's a big electronic game...with money to made every single day, potentially. Never a dull moment. It's a very mechanical, almost rote process in some ways but it keeps your interest like nothing else in the game and it is a game. Doesn't mean you can't get crippled or killed financially, cause you can. It's not investing, you're playing against real live flesh and blood people and they are trying to screw you blind To me it's like extreme sports...only you can still walk at the end of the day, at least physically. You'll find a plethora of disdainful comments abounding on SI directed at daytrading..... mostly from people who don't, can't or think they can't, so be it. The vast majority of people should not. Kind of reminds of fundamentalists...I always wonder if they think they're right or if they just hate to see people have fun doing stuff they won't or can't do. Okay, we won't go there. Once you're comfortable with daytrading you accept it for what it is, a possible quick buck, time and again. You don't angst about dumping the flyer before it's realized it's potential for one reason, you rely on the full knowledge that another one's coming and it's right around the corner. See it? It's coming straight at you, 100 miles a minute. Might be the same stock, recycling after a dip, might be a different one. Who cares? Hmmm, can't wait till open!! <g> I think it's a thrill. But in my opinion it takes enormous work and preparation to get ready for each day, meaning stocks categorized and ready, alerts set, charts ready at a moments notice and a plan in mind for every preset signal that sounds. You have to be ready... And never, ever, ever have enough money in one stock that can really hurt you. Always imagine you're biggest holding being rendered worthless. If that would put you out of the game, then don't play or at least rearrange your holdings. By the way, none of the above should be construed by anyone, anywhere, as a plug for daytrading. Most likely you'll wind up poor and in debt, lying awake at night just praying for the morning light. 'Cause if you don't do your homework, that's what will happen and more than likely deservedly so. Ummm, best of luck. ;) Oh Bryan, take note of the wink. She's a she...<g> Stan