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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chris who wrote (13694)	8/2/2001 11:48:00 PM
From: Chris	Respond to of 52237

excellent comments from l3's site. <names deleted> xxx, after reviewing the charts for the stocks I'm holding I've made a decision about GLM. I plan on selling it tomorrow at 9:00 A.M. and replacing it with SCMR. The reason is that it had a bearish crossover and I don't want to be holding it for a few days in case of quick drop. Theoretically I could short it now but I don't like turning on a stock that didn't move the way I planned in the first place. My objective is to build capital while the market is finding a direction I can be sure it will follow for longer than 2 weeks. If I want to remain doing that I have to be ready to get out when the time calls for it. I'll exit at a loss or in the best case break even. This also shows why I don't use stops. I can usually exit close to where I bought in without using stops and they don't get triggered in the intraday swings. It also shows that nothing is perfect and that you have to be able to change direction without falling in love with a choice and being stuck with that choice. When I started this I had some goals in mind that I hoped I would be able to meet. One was to show that making money in this kind of market wasn't as difficult as some would believe, as long as you don't get greedy. I also wanted to show that you sometimes have to change the way you invest for the differences in the markets. That's why I changed from options to stock buys. My original hope when I first started posting here was to make some feel comfortable with options or at least to understand them. They do have a place in any portfolio and when used wisely can be very productive. I wanted to show that investing was really very simple if you stick to predetermined guidelines. Those preset guidelines should keep all emotion free from your investing. If you set up good guidelines you should never have to worry about a stock you bought or lose 1 minute of sleep over a misjudgement. Second guessing is foolish and should be avoided at all costs. It just makes you do dumber things. It's okay to be wrong, you should never stick with something just to try and prove you were right. My last goal was to show that even though the FA was terrible for the markets there are still stocks that you can play. I may have more shorts at times when the markets are underperforming (or as Lee would say,"performing like they should.") There may be days when there are no stocks to put in the place of the ones sold. You just have to wait for the stocks to come to you, not try to make something happen. If there are as many lurkers as Lee says I hope it is helping some of them learn a few things. If I'm talking to myself that's alright too. These are things I learned along the way and just thought maybe someone would be interested. This isn't for the more experienced posters on this site. They already know far more than me. It's for the people that are just learning how to invest or the ones that never really knew and lost a ton of money in the last year or so. You might as well learn some skills before the next bull run because eventually that will end also.