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Re: jaimerodriques post# 169121

Tuesday, 10/22/2013 11:01:38 AM

Tuesday, October 22, 2013 11:01:38 AM

Post# of 232507
In the case of KMAG, what I have coined 'Ratchet trading' is simply selling high, and dumping all the money back into a lower price. My goal is not directly to make a short term profit, but accumulation of shares using the original $ investment. Nothing too complicated, but it is like using a ratchet wrench. Each turn grips more and more. For other stocks I use some trading tools to help me in this process, and they help take the emotion out of it, by focusing strictly on the share count and not profit. I have to add that a lot of this is done in my IRA, so I have limitations on trading rules, but that is ok, because I use tight limits on by numbers. I only win about 55% to 60% of the time, but I rarely lose actual cash, because I don't care as long as I am gaining shares. And I am not racking up tax bills.
KMAG has been a strange one, because it is like shooting in a fog. I usually have buy and sell orders in at the same time, and how the high ones sell at 8, and the low buys at 4 and 5 don't fill (at the same moment), is a total mystery to me. I have my theories, but as long as it works for me, I 'aint arguing! But the last two weeks, there has been some strange things going on, and I am just holding on the my hat! I hope this makes some sense, as it really is very simple, but it is my approach that makes it easier to execute.
GLTU!