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Strategies & Market Trends : Strictly Buy and Sell Set Ups -- Ignore unavailable to you. Want to Upgrade?

To: Larry S. who wrote (543)	11/24/2004 6:33:21 PM
From: chowder	Respond to of 13449

Larry, I'd have to agree with you about moving on and there are too many great oil and gas companies out there. I wish a few of them would correct so I can enter. TMR was a target of opportunity when I saw accumulation showing up on the hourly chart. You couldn't notice it on the daily chart which led me to believe whoever was accumulating, didn't want us to know. We saw some nice volume to support that analysis and it was a good timing short term play. As you know, my trading philosophy is based around keeping losses small. Even long term traders should manage losses but I'm not sure how they should do it. My experience with long term trading provided too many drawdowns once in the trade. Being down 20% on a position is more than I'm willing to risk and makes it that much harder to turn a profit on a consistent basis. I'd rather have smaller returns and use the power of compounding than to have to hope I can come up with a 40% year to offset losses. Since I buy positions based on a percentage basis, the more I earn, the larger the positions are, thus the use of compound interest. Right now I invest 5% on my portfolio per position and earlier this year used 10% per position. As long as one has a strategy that provides them with more winners than losers, this money management technique is the best one I've come across. dabum