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Replies to #28 on Eagle's Nest

eaglesurvivor

08/21/06 4:36 PM

#29 RE: spintex #28

spintex: when one goes in with a trade mentality, then severe DD is not an issue. Still, one needs to know the share structure. If one gets a speedy reply from the transfer agent, fine, but the latest SEC filings should suffice for trading. The accumulation/distribution chart is quite helpful, along with Williams% and Bollinger Bands. One does not need to analyze them in great depth, but certainly use them as a check off. Also, be up on the news.

Start off with ten or less stocks on a watch list and/or streamer. The others can go on a minor league watch system. As a trader, one wants movement. Forget trying to hit bottoms; let them happen by default.

One on the watch list just had a string of buys with the bid and ask going up: that's decision time. It's quite common to increase one's portfolio value 5-20% intraday on a play like that, IF one will take the profits ruthlessly. No one has ever lost money from a winning trade. Compare this thinking to a baseball team that seldom hits home runs, but scratches out a lot of walks and singles and even some doubles. They will win a lot of games.

If a trade goes against the plan, be ready to cut any potential losses. By cutting losses quickly, one will find that a good single will still cover five quick cuts. With experience the percentages get better. Yet, those early good habits will serve for many years.

For trades that one might look to hold for more than a week, then an exit point is in order. As these type of trades go up in share price start putting in stops, even if only mental.