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Rawnoc

10/05/08 4:21 PM

#3049 RE: littlefish #3048

lol, I went from 3-5 companies at a time to 10 or so now myself. So many bargains I don't know which is going to explode first. In normal market conditions I focus on less positions I guess. In bear markets like this, I diversify more then as each one explodes add that profit to the others.

And, always, have a clump of cash for shorting and bargain quick trades.
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cleverrox

10/05/08 5:16 PM

#3050 RE: littlefish #3048

fishy - I always concentrate on just a handful of stocks. I highly recommend it. Think deflation. Real estate prices will normalize as global credit availability contracts while banks shore up their balance sheets. Oil will go down as global demand for it sours and the price of all other commodities should adjust some as well. There may well be a commodity bull run left intact but I think there is a 20% adjustment about to be made first.

In the U.S. the average home price is 5x median income instead of the historical 3x. The United Kingdom has the same problem. I just don't think that will hold.
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dokkay

10/05/08 7:30 PM

#3053 RE: littlefish #3048

LF are you losing your faith on AYSI? Remember many investors bought this stock because of your knowledge of the product and having a faith in the management of the company. People are carefully analying you to see where you stand on this stock. I remember you have said over and over that you keep buying and have never sold any of your AYSI holding. Can we trust you?
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DOLLARLAND

10/06/08 1:48 PM

#3059 RE: littlefish #3048

Littlefish,

I have taken a similar approach the last few weeks and it has worked much better than holding long any of these micro/small caps. I rarely hold anything more than a week now, and just sit and wait for great buying opportunities, primarly stocks that have had a history of good bounces off of oversold lows in the past. That is why I'm here, AYSI is on my watchlist and it is a potential buy for me in the very near future.

If you're like me, you see stocks on your watchlist with 25+% gains in a single day quite often. All you need to do is carefully target these stocks, buying when oversold, and sell quickly when they make these quick 25+% jumps. It pays to be patient, as you can do quite well with as little as one good trade a month. If you start with a $10,000 investment, and make a single 25% trade each month, your compounded gain will turn that $10,000 investment into $145,519 within a year!

Example:
$10,000 + 25% = $12,500
$12,500 + 25% = $15,625
$15,625 + 25% = $19,531
$19,531 + 25% = $24,414
$24,414 + 25% = $30,518
$30,518 + 25% = $38,147
$38,147 + 25% = $47,684
$47,684 + 25% = $59,605
$59,605 + 25% = $74,506
$74,506 + 25% = $93,132
$93,132 + 25% = $116,415
$116,415 + 25% = $145,519

Obviously once the dollar amounts get pretty high, you'll need to split it up between stocks, depending on the volume.

I plan to stick to this approach, and if it works as well as I think it will, I may just have to quit my day job and be a become a full-time trader!

Rhino