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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (90638)	3/29/2000 4:39:00 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

WCG was a good end to a very good trade (thanks Sharon Button) for your support on that one, held it right before and through earnings and beyond from 28 and selling part of it before the last correction but not all.

To: Jenna who wrote (90638)	3/30/2000 7:18:00 AM
From: Doug Robinson	Read Replies (1) \| Respond to of 120523

Interesting post and here is another perspective for those interested. First, your advice to follow fewer stocks is the some of the best advice one can give to any investor/trader. Far too many newer investors are jumping from one stock to another. By concentrating on the "good ones" the profits one will realize far surpass those that one will make by looking at new companies everyday of the week. Personally, I never use buy limits. It's so much better to develop a strategy using buys signals and then moving in. For most, they don't have the desire or time to study stocks to determine what are excellent buy signals. In those cases, buy limits are applicable but one must set them high enough so they don't get whip sawed during a "head fake". Solid buy signals provide one with two major advantages. First, if structured properly they will indicate a strong move up over 80% of the time giving one some serious profits before a buy limit triggers. Second, they never fail to go up at least 3% from the signal. This means that putting a limit order to sell will get one out with a little profit or in the worst case no loss. This strategy is much more profitable but of course one most be watching the market throughout the day to use such a program. In the case of selling at highs, again I wouldn't totally agree based on my strategy of core buys. Of course I'm initially buying these at prices that are significantly lower than their highs. I'll position trade stocks in the interim and in those instances the selling at new highs makes a great deal of sense, but one never knows when you have hit a new high until after the fact. There are lot's of charts that one can look at that makes one wonder just when would have been the best time to get out. In your example using EMC how many highs had it hit and just when are you going to get out. Look at INSP. A great case could have been made to exit the stock many times before it finally hit it's high. It's always easy to sell but if one is going to reenter based on buy limits this means that a good portion of the potential profit is missed (another good reason for good buy signals). Assuming one calls the top correctly, another problem of exiting at a high is making sure that one re-enters a strong stock at the appropriate time. For those that don't have the time to follow every move in the market, timing of moves in and out of the market may not be the best strategy, IMHO. Additionally, the tax consequences for successful traders is very high and the ability to create an initial position to recognize long term capital gains is important. When one is making their living based on investing in the market, they want to be sure that they have the appropriate tax strategy. Regardless, I'm sure we would both agree that for those that follow the market closely, they are best served by what works for them and recognize that those that aren't so fortunate probably are better off entering stocks using other strategies.