Jeopardy Champ Ken Jennings

[goosemeister]

i have no specific timeframe for stocks in general. it all depends on what i think the stock will do and where i'd want to set my exit points. of course, my exit points may change as the stock increases. if the stock drops, my stop-loss would catch it.

exit points have everything to do with overall investor psychology. you'll see many, many stocks bump their heads against moving averages. either a stock may hit a moving average and retrace, or it may temporarily stall at the moving average only then to take a big jump above it. another possible exit point can be defined by looking at support and resistance prices. look at the chart below for realnetwork. i'd explain what i just said regarding supports and resistances, but i think the chart speaks for itself. you should see tons of patterns below.

now, i may exit early if the stock is not doing anything. it depends on my timeframe. i'm willing to stick it out for rnwk because the stock is still on target for a possible run to above $7. again, it all depends on what i've already decided for myself when i take a position. there are other factors, too, for investors. reasons for squaring a position are numerous. maybe an investor needs cash to buy a dishwasher, and the best available place to withdraw some cash is from the market. though, if you need to sell some stock to get the cash to buy a dishwashwer, perhaps you shouldn't be investing in stocks.

by the way, i've been in love with rnwk ever since i saw this chart about two months ago.