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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (634)	1/10/2002 1:08:16 AM
From: Dave Gore	Respond to of 16631

DO YOU HAVE A TRADING OR INVESTING METHODOLOGY? I am finding it interesting that most people don't really believe in the trading strategy this thread employs. They seem to hate even the quality names when they pull back toward support. They automatically write off the stock as "weak". Since we started in Mid-Dec. our picks and watchlist stocks speaks for themselves. We didn't buy them because they were down, we bought them because they went down too far and the charts offered reasonable assurance that they might rebound strongly when the Market or sector turned up again. Many stocks buys are posted right after they are made, so there isn't much hidden...good or bad. Explanations and discussions are often given, so the logic can be debated. SEBL@24/25(now $34+); CRUS@14.11 yesterday (now 15.40); SLR @9.85 three weeks ago (hit 12.39 today); ESRX a couple days ago at $42/43 (hit $45.51 today); QLGC@$45/46 a week ago (now $56); MSFT at 65/66 last week (above $70 today); Low-priced stocks like LSPN@1.15/1.25 (now 35-40% higher); CLAC@.66 (now 30% higher); CSCO@19 a few days ago (hot almost $22) SANM@20, a few days ago (hit $23+) etc, etc, etc. While the track record shows a few small losers like FNM(down 3% so far and a few others that are down or were cut for losses), I don't understand why most people continue to only play the momentum game. With the Market so erratic, it is more important than ever to BUY RIGHT and not depend on momentum to turn a profit. The last hour today was a prime example of how the Market can turn around on a dime. If you buy mainly quality names, buy them at a enticing price on pullbacks to support, and only go long when the Market looks fairly strong, then I think most investors would be better off. I have done much better at picking buy points than sell points, often selling too early. With the Market stronger these days and less volatile, I need to let winning stock picks like SEBL and MSFT run more. Most people on SI seem to want to play the momentum stocks only. But I guess that's good since we give others a different alternative to think about. Since the posts are public and we have a watchlist and portfolio that is public, everybody can see if this method works or not. It isn't a flashy, adrenaline-rushing way of making money most of the time, but by picking stocks with good relative strengths at good prices, it usually adds up to winning trades most of the time. Hey, you can even sleep at night and have time to play with the dog or the kids or go to the bathroom during Market hours...LOL!