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

To: advocatedevil who wrote (55906)	11/19/2001 3:03:17 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

It must be something more than "gut feel". You must have guidelines, things you key on, other things you ignore. Let's try to express this (if you're willing): Your rules: 1. follow the FA well enough, to decide the stock is overvalued, and the news doesn't point to any near-term reason for the stock to go up. 2. take profits on 5-10% moves 3. have tight stop-losses, to keep any losses within the same range 4. holding period: usually between 1-10 days. 5. a willingness to "press" trades that don't go your way (notice, this contradicts rule 3). 6. when you initiate a short, you have general targets for covering and stop-loss, but don't stick rigidly to those targets. That is, you seem to decide as you go along. 7. you "watch the day's trading". I have no idea what that means. 8. only use a small fraction of your portfolio, so both losses and potential gains have small effect on your overall returns.