Proper "Reward to Risk" and capital preservation are the lessons I hope we have all learned in the last year or two.
OVERRIDING PHILOSOPHY- I am more convinced than ever that the best way to be successful is to BUY QUALITY STOCKS AT THE RIGHT ENTRY POINT.
Quality stocks are those that have reasonable PE's, PEG's and Price to Sales and improving fundamentals or momentum. (It should be noted that I normally don't short stocks). Why is this a good approach? Simply because I believe that (more than ever) these are the types of stocks that most of the big money will flow into, as Fund Managers, baby-boomers, and even many daytraders don't want to get scorched again risking precious capital on over-priced momentum stocks that could take a big hit at a moment's notice. You see, capital preservation is important, too.
TYPES OF COMPANIES - Drug and Biotech stocks, Healthcare, Banks, Manufacturing, Consumer, even Oil and Gas companies ought to be considered along with Technology. We rule out no sector.
Of course, we'll look for special situations, even occassionally in low-priced, highly speculative issues. We'll even look for long term plays, but the thrust of this thread is:
>>>> SHORT TERM, FAVORABLE REWARD TO RISK STOCKS!
>>>> BASED ON CHARTWORK, NEWS, & OVERALL MARKET OR SECTOR SENTIMENT TO DETERMINE GOOD ENTRY POINTS!
>>>> In other words, TRADES THAT MAKE SENSE!
Good luck, all!
PS-- I am often not around to monitor this thread as I have other interests, so I apologize in advance. My hope is that a few of us can work together using our talents and make this a profitable and interesting thread for all.
PS2- Shameless promotion - when you need a mental break, please visit my landscape photo gallery at naturescapes-gallery.com
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