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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: David Smith who wrote (8913)	8/8/1998 12:05:00 PM
From: TraderGreg	Respond to of 11708

The contest portfolio assumed a "Buy and Hold" strategy. If nothing else has been proven, it is that "Buy and Hold" is not an effective strategy for 99+% of penny stocks. It would be interesting to overlay alternative strategies and see how the portfolio would have performed. For example, here is but one: If a stock increases 50%, sell X%. If it doubles, sell an additional X%; more on a triple, etc. until a small percentage may be left for the big ride. If at any point from a relative high the stock pulls back 20% on the bid, sell the balance to lock in the profit. If a stock decreases from the outset, average down after a certain % decline OR If a stock decreases by more than 20% from the outset, sell 1/2 immediately. Virtually any modification to the above strategy would beat buy and hold so far this year. TG