Friday, November 25, 2005 1:11:55 AM
Well Put, using this method is very important IMO. I value this trading strategy greatly because mathmatically it sways the "Risk vs Reward" factor well in your favor for the short run as well as the long run. It allows you to take profits short term, hold free shares long term, play for the long term while minimizing loss, it increases your amount of shares held, minimizes risk, maximizes profits, and several more benefits all at the same time. But I do think that one should be very carefull not to sell to soon as well as to late and this is a skill on its own. Especially where a stock is very strong, because it is quite easy to "Miss the Boat". I use this strategy on EVERY stock I play and many times, even when the up trend fails unexpectedly, I walk away with profits. It is important to add that I do not flip(buy/sell) at just any run up or dip as in short term swing trading because this can be very demanding as well as costly if you miss the run you have been waiting for. So instead I choose to watch for medium term tops and bottoms using for example the 20 day moving average(with TA indicators). This is my 2 cents on what I consider the best trading strategy for any stock! all IMO of course.
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