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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (20482)	1/10/2002 1:42:06 AM
From: Dave Gore	Read Replies (2) \| Respond to of 99280

You could be right, but why was SEBL $23 a couple weeks ago and now $34/35? Was was even a "boring" stock like Washington Mutual $28 awhile back and now $34/35? Why was QLGC 10 points lower a few days ago? Was was SLR 25% cheaper than it is now and sinking fast? I mean everyone was panic selling. Were they bad stocks and now the fundamentals are suddenly way better? Of course not. Some involved profit-taking of good performing stocks or fears of pre-earnings warning season, etc. SLR was a good example of a pretty good company falling on hard times. SLR was a perfect "William O'Neill type stock", one you bought because it was down at least 60% from 52 week highs, but was a proven performer in the past and your research said it could be again with time. You bought it because you believed it was actually safer to buy this stock and pick the bottom by watching the selling slow way down after a few days and watch the stock retest twice its 52 week low and hold. FNM will be fun to watch because it is at the low end of its range which tends to hover between $74/76 and $84/85. It usually pays to be a contrarian if you can stick to quality names. It is often unpopular, but it usually works for me. You can tell me "you told me so" if FNM sinks and I will say "Congrats, you were right" but my stop/loss under chart support will close me out with hopefully only a moderate loss. See, I am not saying I will be right, just taking calculated risks that offer more upside than down. With SLR, I was actually quite certain I had picked the absolute bottom because it bounced off its 52 week low twice, so my downside was 2-3% and upside 30% short term and possibly 50-100% in a few months to a year. Over time I think that pays off. I also think that momentum investing and even "scalping" can work really well for a few, but it is much more difficult. Usually the Big Boys get the news first and the little guy is buying as the professional momo player is selling. This "BUY RIGHT" method works way better for me and I can sleep at night a whole lot better.