Swing trading Canadian

[Croesus I]

Excellent post by Frank... http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=17526562

To:Little Joe who wrote (13387)
From: Frank Pembleton Tuesday, May 28, 2002 11:25 PM
Respond to of 13393

LJ... have you ever charted an insurance policy? Anyway... I'm looking at this way: flip a Bell curve upside down, trace a line from the very bottom that goes to your right which will denote the movement of the POG and trace another line that moves in the opposite direction (to your left) that denotes the size of your commitment to this sector. The more parabolic the curve, the more you begin to protect profits.
If you believe $325 POG is it, walk away... if not adjust your risk level to this sector as required. Personally I'm not going to cash in ... even a little until I see $400 gold, I'll only take 20% off the table - and I'll probably use that coin to speculate on Canuck Junior NG stocks.

Anyway... (again)

IMHO stop charting the gold indexes this sector is too small and too manipulated to ever get a read on, and start working with the Dow theory -- what's old is now new, gold (barberic relic?) is in the Naz is not. Check the SDII portfolio I've got both the Dow Industrial and the Transportation indexes and I'd love to hear some technical talk on this - but on the PM indexes? Are you guys for real?

I'm not against healthy skepticism, what I'm against is protecting profits at the cost of missing the big play.

Regards,
Frank P.

Jessie Livermore's Rules For Capital Gains:

1.Nothing new occurs in the business of speculating or investing in securities.

2.Money cannot consistently be made trading every day or every week during the year.

3.Don't trust your own opinion and back your judgment until the action of the market itself confirms your opinion.

4.Markets are never wrong; opinions often are.

5.The real money made in speculating has been in commitments showing a profit right from the start.

6.As long as a stock is acting right, and the material is right, do not be in a hurry to take a profit.

7.One should never permit speculative ventures to run into investments.

8.The money lost by speculation alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride.

9.Never sell a stock because it seems high-priced.

10.Never buy a stock because it has had a big decline from its previous high.

11.I become a buyer as soon as a stock makes a new high on its movements after having had a normal reaction.

12.Never average losses.

13.The human side of every person is the greatest enemy of the average investor or speculator.

14.It is not well to be too curious about the reasons behind price movements.

15.Wishful thinking must be banished.

16.Big movements take time to develop.

17.It is much easier to watch a few than many.

18.If you cannot make money out of the leading active issues, you are not going to make money out of the market as a whole.

19.The leaders of today may not be the leaders two years from now.

20.Do not become completely bearish or bullish on the market because one stock in a particular group has plainly reversed its course from the general market trend.

21.Few people ever make money on tips. Beware of inside information. If there was any easy money lying around, no one would force it into your pocket.