To: Christiaan McDonald who wrote (3916 ) 6/2/1998 11:31:00 AM From: steve olivier Read Replies (1) | Respond to of 21143
Ken, You are right, this is a great trading stock - tight bid/ask, lots of volume, and most importantly a story that causes people to get excited from time to time and move the stock to extremes. Buying and selling on those extremes is how you make your money. There is no one indicator or method that always works. If it were that easy we would all be rich. Trading involves a lot of work, requires discipline, and most importantly requires being willing to be wrong. Most people are more concerned with being right and they want to be able to say I told you so. They didn't sell at 4 1/2 because the stock could go to 6 and they would look dumb and be wrong. And they won't buy as we correct to low 3's because the stock could go below 3 and they would be wrong. The best trades I have make are the ones where I have said to myself what the hell are you doing, are you crazy? And the worst trades are the one that I felt real comfortable will after I made them because they seemed like the logical thing to do. Being a good trader requires that you go against everything that seems rational at the time. You have to go against everything that is normal human behavior. Forget the charts and indicators, if you can't overcome the mental aspect, you will never be successful in the long run as a trader. Your method of buying and holding this stock, especially if you basis is low, is probably the best thing for 95% of the people out there. I only have tried to caution people that if they want to be a long term investor at least be careful with your entry points and don't buy when all the table pounding (hype) is going on, because as we have seen, this stock does correct!