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Profe$$or

02/12/08 8:45 PM

#17251 RE: oldhamegg #17250

I tell you...personally....when you have limited capital...when I started with next to nothing on that progress tracker...I don't believe in diversification....diversification merely increases your chances of being wrong.
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TWilliamM

02/12/08 9:04 PM

#17254 RE: oldhamegg #17250

It's not me but if I were in your position, I would start closing out positions that you have at "break even" and concentrate on just one. Preferably one you can use the margin on else why have it?

If it was me, and it's not, but if it was, I would concentrate on the "odds and pay-off percentage". You MUST realize at this point, you are not investing, you are "educated gambling".

Examples of what I am talking about. Say you concentrate on a high dollar stock like APWR, how many shares can you buy with your total margin? If you double your 2240 cash with your margin, you can have 4480 less commissions to work with. Less the 1766 plus commissions for the shares you already have. That only leaves you 2714ish to work with. How many more shares of APWR can you buy with that? Ok, so let's say, just for the sake of arguements/discussions, you can get your total holding of APWR up to 300 shares. Now, if you made our 3% goal on 17.66 average, you get .5298 cents profit, times 300 shares works out to 158 bucks and change. See what I mean? You have risked WAY more than your pittance return has given back.

BUT, if you concentrate on a lower priced stock like FRPT or one of the others, you can buy more shares and therefore need less of a percentage price increase to start seeing better returns.

I hate putting all my eggs in one basket, I agree whole heartedly with the diversification concept, except you don't have enough funds available for diversification.

At 17.66 for a hundred shares of APWR, if you get a buck profit, you get a lousy hundred bucks less commissions.

See what I mean?

But I am not one to advise or I'd be writing books on how to get rich in the stock market. All of the above is my humble opinion.
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chidelt

02/12/08 9:15 PM

#17257 RE: oldhamegg #17250

You are WAAAY to diversified!!!

Let's just take a look at one of your trades:

CLZR: 200*3.5285 = $657 Just to cover commision you will need CLZR to go up 3.3%


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oldhamegg

02/13/08 4:54 PM

#17612 RE: oldhamegg #17250

Update from yesterdays fits of anxiety. Feeling a little bit better after some solid tutoring. (I'll be reading those helpful posts over and over again. slow learner.)

Sold apwr at open for only a 5 dollar loss instead of the (100) dollar loss it was showing after yesterday's close.

Sold -100 of FRPT @ $4.01 for a (24.06) loss
Sold -200 of CLZR @ $3.4705 for a (31.80) loss

Bought 400 of ACTU @ $5.01 It's all margin and cash would let me buy at the time.

Still holding:

300 of ZYNX @ $1.55
100 of JSDA @ $6.19

I'm giving these a chance to recover. Smart or not?

yesterday $2240.00

Today $2322.00