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Strategies & Market Trends : Ted Warren's Investolator -- Ignore unavailable to you. Want to Upgrade?

To: WEagle who wrote (1433)	12/31/2023 1:56:49 PM
From: robert b furman	1 Recommendation Recommended By investolator2000 Respond to of 1795

Hi all TW ambassadors: Wishing all here: "A PROSPEROUS NEW YEAR" As we all enjoy the lofty levels of this years close, I will repeat what Ted wrote on the inside of his book when he visited our investment club at GMI (in the mid 1970"s). AS AN INVESTOLATER YOU SHOULD SUCCEED! That does not mean we won't have corrections. In lofty market tops it is hard to find value stocks. The tops of markets that become major market distribution tops do take time to complete. The ,Market makers goe from selling discounted inventory to selling fabricated (newly created short sales) - they are the only ones able to do that! Their additional shares load the market with new supply. That new supply gets sold the easiest when the market soars higher , as euphoria becomes frothy. It is human nature to ignore the joy of everyone making money. It is then that greed must be overcome. It is always best to bail out early and avoid the stress of guessing if a reversal is due or are you going to ride it ALL THE WAY DOWN TO ZERO? I like to scale out in thirds. That doesn't mean I put out a big orders in size. Each stock has their quantity that the market maker will handle with out partial fills within the day. Find that quantity and parse it out such that big drops do not hurt your selling. Hopefully the first third returns your total seed money. I then decide what increments will give me some leftover shares at a much higher price. If you are in a fast price markup stage, a planned sell every 5 points has worked for me in the past. If it is very fast market, skip an increment and sell after 10 points, that moves your overall average up nicely. In the end of it all, you want a positive feel about how you did. You bought and sold that stock and "DID WELL!". It's not fair to look back and second guess yourself with "leaving money on the table". Leave that for the day traders to parse out. Enjoy the opportunities that present themselves at the top. I think we are closer to the top than we are the base building. If you are committed to a life of trading, you'll need only one or two large accumulated positions to have secured your family and their lifestyle. Lastly after a big homerun, resist the urge to do it again immediately. You will have a huge tax bill due. Review your initial buy trades. See just how low a stock can be for a long time - it is about accumulation and distribution. In the 2000 sell off, by 2003 there were many wonderful companies selling for their cash per share! That's LOW compared to today's valuation. It is a life long event you want to take a ride on. Best of trades to all! Bob