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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (3739)	12/4/1998 5:23:00 PM
From: Jay Lyons	Respond to of 43080

Sue- Excellent post. I started with that 1% of bank per trade rule and came up with 1 point. I still use 1 point, even though it now represents less than 1% of my bank. The first led to the second. I know we all have goals and wish lists of how many points we want to make a day, I know I do. But every morning as the bell rings, I say out loud, "I will do everything I can not to lose any money today". Preservation of capital comes before everything else. I'll take a point loss if the trade starts out negative, but if I'm ahead and it reverses, I'm out even, unless I can't get filled. Now...all that being said, daytrading and position trading are two different things, especially a momentum trade in something like ONSL. I made some nice daytrades in that stock, but I didn't follow your and Scott's advice to hold it. Now I was on vacation, and could only watch with envy, but come on, these cowboys were holding that stock through 20 point swings! Who care's when your already a triple? It's like last Spring in YHOO, sometimes you've got to get on the horse and just hold on. Now for Barbara... The bottom line is, if you're ahead at some point, at the very least get out even. Don't ever take a loss in a stock that you were up on. And...if Lastshadow puts it on a list of stocks to short, you can pretty much rest assured that he doesn't see it as a position to add to. And while we're at it, for the lurkers on this thread... This isn't one of those guru threads were someone says "buy this" and everyone says "oh, boy, I'm in, we're a family, tell me what to do next!". This is, rather, a tremendous learning opportunity. A chance to learn the tools that will allow you to think and act for yourself. A chance to learn from people like Scott and Sue and David and John and Alien and Thomas and others. If you look back on this thread, you'll find I came here not knowing how to wipe my own butt with a MIDL certificate. And this is where I learned. (Only 28,000 to go) Time for dinner, sorry for going on so long, Jay