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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Kelvin Taylor who wrote (40610)	6/13/2002 9:35:24 PM
From: Joe Stocks	Read Replies (1) \| Respond to of 53068

Kelvin, I break my accounts up in 4 segments. My retirement tax deferred- 10% equities. 90% bonds and cash. If the S&P or NDX gets above the 200ema I get interested in equities. The DOW is to narrow for an index for me. Right now, at 52, I probably won't go over 50% in equities. My Wife's retirement tax deferred- 100% treasuries and cash.This account stays that way because of our age. Plus I don't have to explain to my wife why her account lost money. My daytrading account- Varies everyday. I often carry postions overnight but usually don't hold for more than a week. My position trade account. 100% invested in longs and shorts that I carry for several mnonths as long as they are working. Stoploss averages about 10%. If I gain 10% I add. If I gain 20% I take half off the table. If the S&P is below it's 200ema I'm probably net short, above net long. My average holding time is about 60 days (maybe 90days) I would guess. These are speculative buys that I don't want to watch everyday and may take time to work. FWC is in this account. RSTO short is in this account. I have some AMZN short. PMCS Short. and some GD GNSS long that I will reset my stop on tomorrow. I don't think I would ever be 100% long. Too many folks bidding prices up to outragous levels to not take advantage of some shorts. My main problem with the talk of this "scaling in" is that there has been no discussion of stop losses. All the assumptions I have heard is "don't worry, be happy - they'll be worth more than this someday". Someone could have just as easily been out there using the same logic you guys are when ENE was at 15. All I see is the easy part. How bouts the hard part- selling when things don't go your way. I heard buys on GLW at 8, 6, and reversal area of 5. Not the scaling in action that works for me. You know, in some investing circles it's taboo to add to a losing position. Losers tend to lose more. Gainers tend to gain more.(the exception of course is if you have a target area to buy in several lots) I'm surprised it's such an acceptable practice here. Joe