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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: Trader J who wrote (551)	11/14/1998 11:49:00 AM
From: Rick Faurot	Respond to of 56535

TJ, You make a good point (#551) that I think new traders should take note of. This caused a big blowout on Tim Luke's thread. Some traders have a tendency to look to others to make picks for them. They then jump on these picks with both feet and for some reason develop sort of a "rah rah" attitude about the position. They expect everybody to join them in the position and scale in if the stock does start to climb. I used to follow a penny stock called ICVI that a friend recommended (I never traded it) and there got to be this "long and strong" mentality in the face of varying market conditions and changing news about the company. People sat in the trade for months believing that it was going to the moon. Eventually, some made some money and others got cleaned out as the stock went from .09 to $1.50 and back to $.01, then wallpaper. My point (and yours) is that traders need to evaluate every trade for themselves, not only when they are thinking of entering, but every step along the way. WAY too many people overlook changing market conditions. I took a long position in CIEN for a gap play back in September. Was it a good trade? I was sure of it. Right after the market closed, Ken Starr delivered his impeachment report to congress. Next morning I was down three points. C'est la vie. Any trader who buys a stock has to manage his trade as carefully as time permits. Personally, if I am not watching my screen, I am all cash. Rick