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Strategies & Market Trends : You buy a stock. It goes down, now what? -- Ignore unavailable to you. Want to Upgrade?

To: Bald Eagle who wrote (2)	7/7/1998 11:32:00 AM
From: Melissa McAuliffe	Respond to of 112

Wise, I think your cc idea is a very wise<g>one. I was in a situation similar to this last yr w/ifmx. (Unfortunately I'm still in it). But I chose to just write cc's every chance I got. They've always expired worthless, btw. I bought that stock at slightly over 9 and my cost basis is now somewhere around 3 or less. So I don't really mind owning it and will just keep writing cc's until I eventually lose the stock. I guess it all depends though on what you paid for your stock and how quick you are to act. Someone who bought vntv at 25 or more will have a harder time with this cc strategy. I just think that psychologically it's more difficult to write cc's at a ridiculously low price compared to your cost. I don't think I could have done it last year on scop...though it would have been the much smarter alternative than to just sit and hold it. But scop eventually got acquired so it turned out for the best. I think that to be successful at what you're doing you have to be realistic enough not to expect to see the stock have some really good run up.. And you have to be prepared to lose your stock if it does...that's why I think sometimes people don't want to do the cc's. They buy a stock they think is hitting a temp. problem and plan to make a killing on the ride back up. If they don't mind having their money tied up doing nothing indefinitely that's a potential solution. Not for me anymore having learned the hard way that there are better alternatives. What I really wish I'd done on this is bought calls and then shorted the stock when I mentioned it. But that was a new concept to me and I just wasn't comfortable. Oh well....live and learn.

To: Bald Eagle who wrote (2)	7/7/1998 11:52:00 AM
From: Investor2	Read Replies (1) \| Respond to of 112

Re: "I've had bad experience using stops. Too many times I saw the price drop down to my limit price, my stock gets sold, then it turns right around and heads north again." What percent drop did you use to set your stop loss? Re: "Doubling down? I've done that, too. Sometimes, it saved my butt, some times it got me deeper in the dudu." I've had some bad experiences with doubling down, as well. It is essentially trying to correct a mistake by buying more of a losing stock. However, it seems that it is very hard for me to restrain myself from doubling down. For instance, I'm considering doubling down on ADPT, despite my generally bad luck using the doubling down approach. In short, I don't have any answers to your post #1, but I certainly do need to find a method that works for me. Best wishes, I2