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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: J. P. who wrote (21158)	10/31/1998 4:00:00 PM
From: IQBAL LATIF	Read Replies (3) \| Respond to of 50167

J.P-- Two things I have learnt from the greatest investor of all time Mr Warren Buffet, one issue I realised was to understand the difference bewtween purchasing individual stock and projections of directional plays on the volatility and movement of the market. I think that stock picking and market direction forecasting are two different animals, this thread makes an earnest attempt to execute the two, one for the core other for a quick trade.. I used my accounting and fundamental skills earlier onto spot companies like Nokia mid 30's or like EMC or IBM or DELL or CSCO (as you will see my first trade which was placed in complete exasperation after seeing on that day when I started this thread many shorting CSCO). However forecasting market direction requires one and only one skill that is understanding of the underlying 'global dynamics' without the sensationalisation of the media and exaggerated fallouts predicted by pessimists, most of us get it wrong on directional play as emotions start playing a major role and exaggerated pessimism freezes us, if one's direction and understanding of global events is balanced and on right course more often than not one will be able to ride a trend,albeit on the break of a support or a resistance. One very important issue in market direction is that market movements are every day plays, the jargon I should put should be tradeable the levels need to tradeable levels, on stock plays we do it for core portfolio, ofcourse when non-sensical valuations are reached I use NOK.A type plays as important tools to capitalise a swift move up.. Nok.a in a very volatile market like CSCO DELL and others is a wealth multiplier it should be in one's core holdings but on days like composite at 1320 and NOK.A testing 58 and change is a typical bet to multiply ones returns. I have no hesitation to admit that I was longing Nok.a at 71 on the way down as I was pretty sure that emotions and negative sentiments are providing me this oppoortunity but once my mind was made as I knew the stock well I had no hesitation to pull the trigger on CCI NOK.A at the near lows of the day, I was wrong and early for few days on the way down but I was anyway protecting my downside by predicting the break of 1478 as a very big negative and test of Oct lows, due to my global understanding of market fundamentals my direction was always long, my levels were known to me like 858 or 1320, I reversed their on seeing the bond break but opportunists trades placed on break of supports are one other element in my armour I could leg out at the right time since I knew that macro economic fundamentals are intact and our rebound from Oct lows would be ferocious,I would have felt like an ass--le if I had not known the historical importance of 1320 or fail to notice the bond break, the market movements are all left for prosterity, what remains in the end is the bottom line, perpetuity of an approach is the worst habit, no one would survive this too long, one should be able to capitalise or down without emotion and hype.. Last but not least the activity on a thread should be witnessed by the bottom line performance...... that is the ultimate test of trading, consistency means nothing if trades don't add up. What I greatly admire on this thread is that translation of every trade mentioned here to a ticket and consequent movement of the bottom line performance this is a record which even Ray envies and I cherish the most, it is based on this last item I feel good enough to create an academic record here and replica of all this theory on my statements..That is the ultimate test.. the day I fail that I will never ever write, for me fooling my ownself is one thing I would never ever subscribe too..if my trades don't work the artist in me will die and my trades criterion is ticket for the trade, return from the trade..I am grateful to this thread it has taught me discipline, commitment and reposiblity, in absence of this I doubt I would be that good a performer atleast for my ownself, my earnest desire is to make this art if it an art as common as possible -- so help me God..