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Strategies & Market Trends : Technical Analysis - Beginners -- Ignore unavailable to you. Want to Upgrade?


To: Chris G. who wrote (7783)1/14/1998 11:26:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 12039
 
On the subject of capital:

What ever capital you have, can be put in any stock.

price $1000 $10000 $100000
10 100 1000 10000 shares
80 80 800 8000

If you think either stock has a potential to increase 20% in 3-6 weeks, then get a 20% gain off of what you have. %s count not points. There should be no thoughts of instant riches. If you are starting with small risk capital, you act as if it is big capital. You also ought to reinvest your winnings until your build it up.

My answer as to how must one needs before thinking about trading full time was 250,000-500,000 risk capital. I think it should be on higher end for flexiblity.

Our friend Henry Brookins has kept his newsletter subscribers in cash mostly since early October. He is very protective of his and his clients money. The gunslingers pull the trigger at every rabbit that jumps up. They won't last long, they can easily run out of bullets. The key is perserve capital, the market is always there.



To: Chris G. who wrote (7783)1/23/1998 6:36:00 PM
From: Liam Kingsmill  Respond to of 12039
 
Putting up a couple of real examples of how easy it is to get nibbled to death trying to deal with boredom in poor trading environment. A hundred shares of CHX at 15.5 (around 15 today, 1/23) or GRST at 9 and now bid at 8 7/16.

When I go back to see why I bought it turns out the answer is boredom.

This is one way to lose it... shoot off a piece of finger here, a little toe there... pretty soon it adds up to real digits.