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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Clappy who wrote (26240)	7/21/2000 4:41:26 PM
From: Jim Willie CB	Respond to of 35685

fantasy trades would be like training wheels it would develop some good practices start small / JW

To: Clappy who wrote (26240)	7/21/2000 5:56:23 PM
From: Book Bag	Read Replies (4) \| Respond to of 35685

Clappy, Polvie, Keith - Here's some buy/sell indicators I found in a couple of books I've been reading lately:- Buy in an uptrend when the Naz Comp moves above its 50-day average. Buy when the stock has moved up 20% from a temporary downtrend which tested a gorilla-type stock's 200-day moving average and any other stock's 50-day m.a. Don't try to guess the bottom on a correction down - wait for the reversal. Double your money in stocks that have moved 20% higher in 3-4 weeks or less. Add capital quickly to your winners and get rid of your losers or slow performers to concentrate your money in 3-5 of the biggest winners. The bulk of your money should be in your big winners not your losing positions. Buy on up volumes - no higher volumes means no sustainably higher prices. Take advantage of the float - a limited supply of stock helps drive the price up. The market (more often than not) moves up from the last trading day of the month through the fourth trading day of the following month. Never average down! Never sell a gorilla-type stock until it breaks its 200-day moving average and doesn't bounce back quickly and its relative strength drops below 70. Never sell an emerging gorilla-type stock until it breaks its 50-day moving average and doesn't bounce back quickly and its relative strength drops below 70. Sell when you find a new stock that's more attractive than your lowest performer - buy the new one and let go of the old one. Sell a shiny pebble on an 8-10% drop in the stock in an otherwise positive market as measured by the Naz 100 Index. Stay with the shiny pebble if you bought at its break-out point and it reverses to its 50-day average. If it doesn't move higher on increased volume then sell. Sit tight and don't sell when the Naz drops 10% or more in an overall correction. If you must sell something, get rid of your worst performers and reinvest in your best performers when they cross back over their 50-day or 200-day moving averages. Pre-define your loss and set a mental stop to get out at a price 6-8% lower than your buy price. Never move the stop down as the price drops - get out and preserve capital. Move the mental stop up as the price rises - always preserve a minimum of 50% of your gain. Be disciplined and objective. Don't rationalize the market to support your position. One book suggests dividing your account by putting 50-55% in the gorilla-types, 20-25% in the emerging gorilla-types, 20% in shiny pebbles and 10% cash or margin to take advantage of opportunities. Good luck to all. BB