Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Malyshek who wrote (50721)	5/6/2006 1:19:39 AM
From: Canuck Dave	Respond to of 312802

Any position which is in a 15% loss state gets jettisoned. If it's something I don't know a lot about, it's often closer to 10%. If I've made a lot on it in the past, I might give it 20%. If it goes up 15%, I'm typically buying more looking for a big mover. Since I usually only start with a small number of shares, the losses are kept minimal. I buy more shares on the way up but don't have a fixed percentage rule. I'm looking for technical signals (e.g. bid depth, shares being bought at the ask, resiliency on market sell offs) to buy more. Ultimately, I'm looking for stocks with the potential for big moves, so don't mind getting nickel and dimed at times. The big winners wash away the cumulative losses. No trading system is perfect. Sometimes I get whipsawed in choppy markets (OZN, more than a few times) or trying to pick a bottom on something (recently, CDU). The worst thing is when something goes up a lot with me buying, and then drops quickly (or when I'm travelling or get lazy). I have to pick an exit point and sometimes wait too long (examples: TM and FSR two years ago). I break the rules only for one person and his top pick. That is Claude Cormier, and the stock is CKG, which dipped into the high 3's last year. I kept every single share. No simple rules, I'm afraid, other than if you lose it all you can't make it back. So capital preservation is job number 1. Hope that helps. CD