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

To: waverider who wrote (15843)	7/16/2002 6:11:14 PM
From: gold$10k	Read Replies (1) \| Respond to of 36161

Hi WR, My thinking was pretty much as described in the last post. I've had some success in finding good individual buy points once the sector (the NAZ in this case) gives indications that it is in the bottoming process. In retrospect, I didn't start early enough... check out some of nspolar's buy points on some other techs. The $2.12 on ADCT seemed low enough for an initial buy that would get me on board. Under $2 would have been ideal, but waiting for it would have left me at the station. I use mental stops only and then only once I am fairly certain that I am wrong. Even once significant support is broken, there is often a rally back to it that can be sold if the support-now-resistance is not re-broken to the upside. This helps reduce whipsaws, but nothing works perfectly. It also helped me to check in with Zeev Hed, whom I consider to be a brilliant and generous fellow. For now, this is just a trade and I am definitely not betting the farm. Perhaps in October there will be an opportunity to buy and hold for at least a few months. <g> vt

To: waverider who wrote (15843)	7/17/2002 2:02:39 PM
From: gold$10k	Read Replies (4) \| Respond to of 36161

WR, A case in point about stops... Monday I bought DY @ 10.10 with support @ 10, then it went to 10 (oh well, can't get it perfect) then yesterday it rallied to 10.88 and pulled back to 10.35. Today I bought again @ 10.10 while the NAZ still looked strong. Then as the NAZ pulled back, DY broke support to 9.85 then rallied back to 10 and I sold @ 9.99. 9.85 was a big enough breach of support to convince me that it was no longer a good bet, but I waited for the rally back to support-now-resistance to sell for a smaller loss. There's many ways to trade. Some would say that I should never have let a winning trade become a loss, but as support looked good and I expected to be able to get out @ 10 worst case, I wanted to let it bounce one more time before a potentially bigger move. Right now it's at 10.14, so I still did not avoid the fakeout (time will tell), but I don't care because my loss was small and I no longer have faith in the trade. Regards, vt