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gfp927z

12/04/24 2:48 PM

#595 RE: fung_derf #593

Derf, >> ZS <<

In the cybersecurity sector, I had PANW (great LT chart, great numbers), and also some CYBR (decent chart, so-so numbers). I previously had some FTNT, which has nice numbers but the chart has been sideways for a few years, although it recently has resumed its uptrend. With ZS, the chart looked too erratic, and the numbers not good, so I went with the others.

I know little about the sector, but it was performing well and seemed like a logical place to be back in 2020-21, so I mainly went with the ETFs (CIBR, HACK, BUG, IHAK). These zoomed to excess, so I took profits and exited the sector, along with the other trendy sectors of the Covid period like fintech, robotics, clean energy, cannabis, etc. Then ~ 1-2 years ago I returned, with small positions in PANW and CYBR, but then took profits in those several months ago in favor of the S+P 500.

PANW especially looks nice, based on the LT chart, so I'd probably go with them. But it sounds like you are looking at ZS as a trade, so that makes for a different analysis. Fwiw, my philosophy with trading was to only trade stocks that you wouldn't mind owning for the long term, since you might get stuck with them if the trade goes wrong. This way, time will bail you out since it's already a good LT stock.

Using the S+P 500 simplifies things considerably. The % moves are less, but because it's a broad index you can comfortably invest larger sums, so the total profit potential is the same as with individual stocks, but risk is way lower and less Tagamet required. It's been working, but you do miss out on the thrill aspect of individual stocks.



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