To: Kimberly Lee who wrote (2920 ) 4/29/1999 10:29:00 AM From: Dave Gore Respond to of 108040
Kimberly, you and I have 2 slightly contrasting but excellent trading strategies, I think. Your strategy of picking stocks about to break out is a superior one. I think mine is pretty good, too. I try to buy stocks at very safe levels and wait a bit, if need be. You are a great momentum investor. People on SI should be thankful that you are here, because momentum investing is not always easy. I am good at it, but still find it hard at times, and without Level 2, no one can do it consistently and effectively. Just managing your time is tough, as there is so much to watch at once, and timely trades to make. My strategy is a bit calmer and probably not as fun, at least for awhile...lol. SOME EXAMPLES (like you there are lots more) I had great luck with SHAL at $2.25 and holding, and then selling back if it ran too fast and buying back. I even got a few hundred FREE shares of SLNN, with my 10% dividend, that was avaialble to all that bought SHAL in February. Yep, I waited an extra 6 weeks for SHAL to take off but now I have over $5,000 of FREE SLNN stock. Bought WLGS at 22 cents, waited for it for weeks, and of course selling recently as it ran up big towards $4.00. Sold because while it might be worth it, when a stock runs a long ways, very fast, it is more likely to fall then rise more. I play the odds. You do that too and are great at selling and buying back, etc. Bought MRPS at 38 cents, then sold for over $2.00 on it's first run (like you did when it ran too fast a few months ago), then buying every significant dip around $1.00 and holding from there. I play it safe and smart and play the odds. I did massive DD on this one and I put lots in this because it was the safest and surest stock to go up 500-2000% percent (with time) that I had ever seen. FTRK buying too early at 50 cents but holding and buying dips at 20 cents, then waiting for months, as it finally ran to 1-3/8 yesterday. TLTG loved it at $1.38, sold on quick pops, then bought dips around $2.00 - $2.25. Very solid stock and well over $4.00. This was safe because I noticed management always kept their word and got PR's out on time, and when they preannounced a "guaranteed 33 cents EPS" for 1999, I knew the odds of this going higher were very high, and that made this a bargain around $2.00. Again, a no-brainer. etc....All promising stocks that took longer to go up but when they did they went up BIG. I did lots of DD, so I thought they were very likely to go. Now I wait for TLWN, SETO, RDIM, and SYCD These have either huge sales increases and/or are profitable already in the current quarters. Ditto bigtime for for MRPS and WINR to launch toward $10 by year end. And of course CSIN and others. BOTTOM LINE: I think people should use both strategies. Mine may work well for part of one's portfoio, particulary if one can't watch a LEVEL 2 screen all day. Yours is certainly superior for those experienced in seeing or sensing momentum and have access to Level 2 or you....lol Take care and best of luck to all here, DAVE