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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Rick Storm who wrote (46950)	5/18/2001 2:50:08 PM
From: kdavy	Respond to of 70976

Rick, (Thank you for the explanation. Do you count the 2 points stop loss in the next 10% down or do you start the 10% AFTER ; recently lots of stocks have had 15 to 20 % ranges at best ; so its looks like you need a large universe of stocks to use your system;) Yes, the 2 point are included in the 10% drop for the next purchase. This works really well when markets are volatile. Last few months have been unusual and have large fluctuations. Usually, I end up working with 10% drops; sometimes with 20% drop. Greater than 20% is pretty unusual. No, I do not work with a large universe of stocks. I have a narrow choice of companies. (Amat, Nvls, Mxim, LLtc (most trading, 60% of the time), emc, txn, adi, intc (medium trading, 30 % trading, and amgn, bgen, itwo, sunw, orcl (occasional trading, 10%). I am willing to try new companies but have not done that for a while. Recently, I have divided money in two accounts. Account A for Short term trading ( 1-10 days), account B for longer term and covered call writing. Several times I have committed 200% of my funds (with 50% margin) in just three stocks. For example, in early April I had mxim,lltc and amat @36, 35 and 39 and made on the average 4 points on each. When I commit this kind of money I have to put tight stop losses. ( I see you follow @ 10 if memory serves; is this enough for the kind of movement you are looking for--also why have you choses PNF charts as oppossed to time related ones as ranges are dynamic and like now appear to be changing; in fact we look like we have some type of up trend occuring in market- thank you-- rs) My choice of buying points are guides and not fixed numbers at 10 or 20%. These do vary depending on the situation and how I feel the market is going to behave. I am sure I can get large % gains if I expand my range of stops and sells. But I feel that frequecy of trades will decrease dramatically. At this stage I am contented with my style. In few years I may slow down and just enjoy the money instead of enjoying the market game. I do use both averages in charts and PNF. PNF gives defined points and time does not play any role. It is just supply and demand. From my experience, I have felt very uncertain about the market direction each time I buy the stocks. I am as certain of market direction today as I was a month ago, 3 months ago or 6 months ago. I am not willing to commit my money for the long time. Look at the trends and ranges and make my choices. For my type of trading long term outlook doesn't help. I need volatiity. If things change then I will revise my style. Bottom line in all this is that I minimize my losses. Each time I lose money, I have to work twice as hard to get there. Don't worry about not making money but worry about losing it. kdavy