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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: waverider who wrote (13455)	5/29/2002 7:01:47 PM
From: SliderOnTheBlack	Read Replies (2) \| Respond to of 36161

re: strategies - stops vs. buying dips waverider; here's my thinking & much of it was formed from my experience in the last 2 OSX cycles. Once a cyclical sector produces doubles, triples and some 4-baggers in the frontline "name" companies - ie: NEM HGMCY GOLD GG KGC MDG GLG RGLD DROOY PAAS etc.....then you MUST imho; morph to a more "technically" oriented gameplan that is more oriented to protecting profits than trying to time exits & re-entries; or calling "the" ultimate top. The only way one could have exited the tops of the last 2 OSX cycles with the bulk of the run in ones pockets; was to "stop" re-buying dips and start taking partial profits on all "later cycle" rallies, as well as continually raising & layering tight trailing stops up behind each rally and most importantly - no longer buying dips/pullbacks; but only buying breakouts thru prior resistance levels ie: new highs. On the final crescendo move from OSX 115ish up thru 140; if one keep raising stops up with a 10%ish sell stop set; you got out of EVERYTHING between 125 and 140 and never bought the ensuing dips; that were followed by more dips and the ultimate "JUNE SWOONS" that cratered each of the last 2 OSX cycles. For those that were here early - say in the $18-$20 NEM range, .60-.90 cent KGC range, $4/$5 HGMCY levels, $1 DROOY etc.. the only "safe" way to not let triples turn into doubles, or doubles into singles, or singles in to breakevens, or losses.... is to set tight stops and only buy on new breakouts thru prior resistance levels after triggering sell stops. ...At THIS time & at THESE retained profit levels - that's how my mind thinks. If you stop out of a stock & bank a "double" - take maybe just 10-20% of those profits to buy a dip, or maybe just take 10% of those retained profits and buy some out of the money - outlying calls... bottomline: "they aint getting it back" (vbg) ~