Replies to post #71918 on GoodFellas Big Board Catalyst and Chart Plays

[Esva]

One of the main things like crookedneck said in a post is not to hold on to your losers. Have a mental or put in a stop loss with your stock after you buy it. Buy a little above the support area, then set your stop loss a few cent below. Don't be greedy and set a gain dollar amount or percentage on a stock. Sell it when it gets there no matter what. There will be times it will continue to go up, but by selling, you still have made the profit. This has been working for me and paying off. When you get stopped out or sell for a loss, just move on and evaluate what you did wrong. Don't get hard on yourself, it will come. Been trading for about 5 years and finally it is starting to payoff after learning and educating myself about trading. I still do this. Find a mentor who you feel could help you along. Just hang in there!

[trade2much]

Wrinks you wrote " I have MUCH to learn and I do make money, but I work my ass off to make my $500 a day."


You sure would never know it from your pic in the boat.

[crookedneck]

My Trading Strategy Revealed:

Ok Wrinks, I will divulge one of my main trading strategies that I use and we can even track it to see how it plays out.

First off I scour the investing community to find big opportunities in undiscovered stocks that are about to make a big move due to various reasons, ranging anywhere from upcoming news, improved financials, etc. etc. In other words I checkout lots of news bulletins & Investment newsletters like; Motley Fool, Stansberry, WSD Insider, Money Morning, Bloomberg, Agora Financial, etc. etc., to see what opportunities exist in the market. I do not pay to be a member, but I do take the free subscription services. Many times these newsletters leak out content that is reserved for paying members inadvertently or give clues that one can use to find out which stock they are referring to.

Then I use a lot of in-depth DD to determine if the stock is worth investing in. Just a quick look at financials will weed out many, but then there are those that are in the midst of turning their financials around in a big way, which is what I really like, but I do some digging to see if this for real or just some pipe dream used by a stock promoter to draw in investors.

I will give you a quick list of some of a few I found and profited from in a big way using this method and a quick glance at their charts will show you the results, so here are a few that recently made me some excellent gains: PAMT, AHS, PGH, KTOS, IRBT, VICL, JOEZ, & OPK(see charts below). The problem was I wasn't committing enough money to each of these plays and though I was making some nice gains, I could have made so much more if I had invested much more in these stocks where I trusted my DD.

Recently I ran across NQ and really dug into their business and what lies ahead. In my research I found this company was just taking off in the mobile security arena, which expected to be one of the biggest growing industries this year and beyond.

NQ is worldwide and the market leader with numerous new acquisitions and new contracts coming in that would jump start their financials in a very big way. After completing my DD I bought 3000 shares in chunks of 1000 over a one week period with an total ave cost of $6.89 per share prior to their financials coming out.

Then when financials were released the stock jumped up to around $10+ in which I preceded to sell in chunks of 1000 once it went over $10 per share and ended up with an average sell price of $10.22. This netted me a nice $10,000 gain(+48%) in about a week and a half. Now it usually doesn't happen that fast and to net so much, but it has worked well for me time and time again to net big gains by getting in before the crowd and holding tight until things take off. Being patient is very key and sometimes I may hold some stocks 3 to 4 months before I flip them, while others I may hold less than a week. It just all depends upon the situation.

Here is the best part. Now NQ spiked up very fast behind these surprising earnings that were outstanding to say the least, but then the stock slowly drifted down and settled where it is at right now and I loaded back up with 5000 shares in the $8.50 range this time around. Why you ask? Well it is pretty simple actually and an easy no brainer as far as I am concerned, because despite the great numbers NQ had, it only included 1 month of revenues from its latest acquisition, mobile game developer Feiliu. They closed that deal the end of November, which realized $700,000 in December alone.

Plus NQ has been consistently growing their paid membership and making additional deals, which will only increase revenues all the more, thus I expect another GREAT quarterly financial that will beat the streets estimates AGAIN. Plus at that point I think the street will wake up and seriously realize what NQ is capable of and notice how great their future is as the world leader in this market and their share price will get priced accordingly and be north of $16.00+ per share before the EOY.

Now you can watch to see how it plays out and if I am correct with my trading thesis on NQ the second time around.

The point here is when you do your true DD and find a gem like this you need to take every possible step to maximize your returns and go in big. This is in no way an endorsement for everyone to dump their life's savings into NQ, since as we all know there are always some risk and each investor has their own personal risk factors to consider. This is just a starting point for one to do their own DD to see if this investment is worth their own financial risk.

The other point is that when you find a great stock you can make great gains multiple times if the opportunity presents itself. I will be a long term holder with NQ, but that doesn't mean I won't flip it along the way when I see huge spikes like this. The other advantage of trading a stock multiple times is that you become very familiar with how the stock trades and reacts to news, market conditions, etc., giving you an inside edge.

In summary, when I find a good stock that I have done my extensive DD on and truly believe the stock presents a great opportunity, I will load up using several buys over a period of time to ensure a good overall average net price and hold onto it until something dramatically changes in the company's fundamentals or when the chart says to take profits.

I find myself now going in much heavier into the stocks I truly believe in to maximize my gains, as long as I trust my DD and stay up to date daily on what is happening with the company. It is time consuming, but the payoff has been well worth it.

Whew! I am all typed out - lol.

Cheers!