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

To: DanZ who wrote (43269)	8/29/2002 11:22:27 AM
From: Ron McKinnon	Respond to of 53068

it's still a low volume trading market no idea what/when it will change in a few days I've gone from net long, to short, and now long once again no huge bets (yet)

To: DanZ who wrote (43269)	8/30/2002 7:55:34 AM
From: Joe Stocks	Read Replies (3) \| Respond to of 53068

>>>This is typical action for the semiconductor stocks...very volatile group but if I'm right that they have bottomed, buying the dips will be very profitable going forward. You may not pick the ultimate low on every dip, but buying a little on dips, adding a little more if they dip more and selling off on the rallies will work well if the trend changes to up. <<< Dan, You say that you don't try to pick bottoms but your words imply that is what you are doing here. Your strategy appears flawed to me because, first, you mention no stop loss strategy if you are wrong. And, second, if are "selling off on the rallies", your approach is even more one-sided without loss management. In other words, you are suggesting limited gains with limit-less losses. Rarely does this work and especially since you are trading against the longer term trend the odds are against you. Joe