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

To: Jerome who wrote (47530)	6/2/2001 6:43:43 PM
From: kdavy	Respond to of 70976

Jerome/Michael/Thread Past few months have been tough for investors but probably best for traders. I think next few months will also be excellent to trade. Here is why I think so. Stocks significantly down from tops, bottom for good companies is limited. Of course, there will gut wrenching down days and thrilling up days. That's what makes trading fun. Companies like Amat, Nvls, Mxim, Lltc etc may touch their lows again (MAY BE?????). But that makes the bottom clearly with in sight. Here is my plan for next five to six weeks: Account B: Currently 100% stocks. (Nvls 40%, Amat 20%, Mxim 20% and Lltc 20%). No covered calls at this moment. Will write covered calls at 55 or higher for a premium of 4.50 or greater. Account A: Trade based on the following guidelines. Follow 10% down with about 10-15% funds, follow 20% down with 40-50% funds. Of course with tight stop losses. (Jerome: I have been following this three down days formula and It works most of the times. I just enforce it with a 2 point stop loss). Set limits of profits way in advance. Stick to 4-5 points. If I buy a large amount (say 5000 shares) I protect it with a tight stop loss or hedge with in-money puts. Keep moving stop loss as the stock moves up. I will try to post some of my trades which I feel may benefti the thread. I do lots of crazy trades but would not waste your time with those. good luck. kdavy