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

To: Dean who wrote (1714)	12/11/1998 6:29:00 AM
From: NoWhereMan	Read Replies (1) \| Respond to of 56535

Dean, on marrying a stock like ASTM, I am in the same position with NM. I've done my DD and I don't think it's a bad thing. I had a similar experience with ONSL. I got in when it was in the 14's and got out near 16 (hardly made anything)because it started heading back to 14. Shortly after selling, the "real" market took notice, and it promptly went to the 80's and is now trading in the 30-40 range (my right leg has gotten extremely limber, as I can now kick myself without even standing up :^} ) I firmly believe that it is wrong to buy a stock that is going down, (or short one that is going up), but this rule applies more to day trading, and not so much to investing. So, if you have a stock that is going down, but the underlying fundamentals are still good, then I think there is nothing wrong with taking off your daytrader hat and putting on your investor hat. You can learn a lot about a business, it's sector, and business in general (the stuff they don't teach you in college)when you follow a particular stock that you own. I'll admit, I'm still in NM since the rally a few weeks ago, in at an average price of 9 7/8. I could have taken a slight profit and freed up a few bucks Wed this week, but I am enjoying following the stock. I have learned a lot about it and it's CEO(Steven Lehman) and feel pretty good about my position. I can actually relax and stop refreshing the screen to see if the price has gone up since 5 minutes ago :) . One thing I think I'm starting to see is that if you follow the daytrader threads(tokyo etc.), there seems to be a tedency for these guys to post their actions and predictions after they make their move, causing a secondary reaction among traders like me. Then they take their profit, and unless they generate enough momentum, or unless the stock really has some serious interest in the "real" market, I get left holding the bag. They blew the money bag up with air on ASTM and handed it off to you. all the air leaked out before you could hand it to someone else. (It's like those helium balloons you bring home from the party, they are up that night, but when you get up in the morning, they are on the floor, and nobody wants them.) Fortunately ASTM has +real+ potential. Another thing to note, since I'm rambling here, I trade with some "play" money(funds that I would use to buy aftermarket parts for my old bimmer etc.)and not the "rent" money. Even so, when I'm on the wrong side of a trade, it can really ruin my day. I'm starting to learn to separate myself emotionally from the trading process, and find it makes for clearer thinking. I still celebrate a victory, but I have been trying to avoid doing things based on feelings like anxiety, fear, hope, and that "should have/could have" feeling. For the other gearheads out there, I've knocked the rear view mirror right off the windshield(don't look back, unless you really want to turn around and look for a good reason). If you drive without your rearview mirror, then you only look back when you really need to; your about to make a move in traffic etc. With the mirror up there, you have the opportunity to make frequent glances to see who is trying to pass, tailgating, am I pulling away from that guy I don't want ahead of me etc. All this distraction in the mirror takes your attention off what's ahead. Have you ever been occupied with what was happening in your mirror to look up and see that what's ahead of you is about to ruin your day? Do you see my analogy? As always, this is all JMHO and not necessarily reality. It's my reality though, so I thought I would share it. I hope I didn't step on any toes in the process. Best regards, robb