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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: nikkei86 who wrote (41246)	1/29/2011 12:15:52 AM
From: Spekulatius	Respond to of 78618

Re value investing >>That definitely has to be frustrating. I'm not a big technical analyst, but I'm sure it would be helpful in building a position.<< True, as a value investor, I am far more often frustrated than satisfied. I am frustrated when the stocks I consider to be cheap, become cheaper (after I acquired already what I consider a full position). I am frustrated when the stocks that I bought go up, before I bought a full position. I am frustrated when the market goes straight up, just like it did during the last few month and I find lot's of stocks to sell and nothing to buy and cash swells to 40%+. But then on the other hand, I regard as all this frustration as the price to pay for usually better than average performance. I could entertain myself better buying Momo stocks. Lot's more people to talk to, blogs to study, new tech trends etc but is it profitable. I guess I stick with what works for me and if I want to be entertained I'll watch a good or bad movie or have a few cold ones with a couple of friends from work. Anyways, i buy more stock position in chunks. I average down in increments. I have a max. $ amount in mind when I first buy a position and usually keep the first buy at 1/3 of that $ amount, sometimes less. There are exceptions from this rule when I see a real special situation or a very attractive opportunity. I look at technicals too, but I find them to be of limited use. There are resistance zones, breakouts and all that but what is really going to happen. Resistance zone can be broken or they stay intact and the stock bounces back. ' Case in point ABT - stock looks really weak and a resistance zone is in the 44-46$ range. Will it hold - I don't know...I bought my first at 46.21$, my second today at 45.35$ in another account. I bought 2 lot's out of my possible 6 total, so if it goes down without any bad news I think it will go down in the 42-43$ range at which point I probably buy my 3& 4 lot. Who know if it goes up - either way, I am prepared. The way I see it, so more volatile the market is, the better, as it provides great opportunities for those with cash and conviction. In reality, I don't really have that much conviction, I just follow a sort of mechanical approach to average down carefully while trying to asses the risk and downside constantly. but selling just because others selling assuming they know more than I do? That is a loosers game, imo.