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03/20/07 10:32 AM

#2018 RE: gktignol #2017

Tell tale sign of a bottom? When the price reaches zero!

Oh dear! GK I do hope you have a sense of humor. I've never been able to resist a good straight line. If I offend, please forgive me.

Seriously though, I've looked at a lot of mathematical and charting models that are supposed to be precise predictors of inflection points and have come to the conclusion that there are no perfect models. If there were, we would all be filthy rich.
I look at price movements, average differentials between daily highs and lows and price reactions to company and general news and then try and make an educated guess as what the stock will do.(I follow and invest in GES which is almost a classic example of predictable price movements and thus a good vehicle for in and out trading)) I suppose I go more on instinct now than anything else. That comes from being a social worker for a long time; you get to be a good reader of human behaviour.

I cut my teeth on the penny uranium stock market back in the late forties and fifties and one time I told my father to buy a particular stock, which he did. When the stock had doubled I told him to sell it. A while later he came to me and said that he was very angry with me because the stock had gone even higher and he had sold to soon. I asked him, "You made money didn't you?". That was my first lesson in greed behaviour and I suppose in trying to pick tops and bottoms.