Noahedwinbeach2
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To make money in the market you have to become a machine taking away all emotion. Famous market professionals like Darvas in the past have had strict rules and abided by them. That has set them apart from 99% of all traders. Most traders don't take there losses when they are supposed to. I cut all my losses to just 3% and focus on fast momentum stocks. My current posistion is GRA. I hold the stock until my stop loss is tripped. I never lose more than 3% on any trade. There are no exceptions. The point is you can always purchase the stock back again. I only purchase stocks that have made new 52 week highs on great volume. Look at past examples such as TASR and RIMM. GRA also has the same look. To become good in the market you have to study past stocks and how they reacted. Reading IBD can be helpful. I am a purely technical trader. I do not care about earnings. The reason is earnings often lag behind performance. By the time the numbers catch up the price usually has already ran up and is near its peak. The market is run off supply and demand so fundamentals to me are useless. Most stocks I end up buying have good fundamentals anyways and this is just by chance. I do not look at fundamentals. Good fundamentals do not mean the stock price will zoom up. The stock price will only run up on great demand for the stock. These are the rules I go by.
Search for stocks making new 52 week highs. Wait for the pullback and then purchase on the next breakout day on big volume.
Example: GRA - 10/12/2004 breakout on huge volume. Purchased 10/15/2004 on even large volume after the 2 day pullback. The pullback is due to overhead supply. Most stocks will do this after a breakout.
After purchasing the stock I put an immediate stop loss order for 3% below my purchase price. I have since updated that stop loss to the point where I will not lose money on this trade. The number one rule in trading stocks is PROTECT YOUR CAPITAL AT ALL COST. Never let your losses run! That is exactly how I used to lose money. Now I am making money. I am up 20% in 3 weeks which is good considering the current flip flop market. I update my stop loss after every pullback. For example: GRA just broke another new 52 week high on friday. I put a stop loss under that lowest point of the pullback at $11.51. That is right under the low of that pullback. I will continue to do this until the stop is tripped. That is how you protect your gains and prevent massive losses. You have to become a machine. This has to be executed on every trade otherwise your emotions will get in the way and you will lose your shirt. The fact that your stock is going down is good enough reason to sell, and the fact your stock is going up is good enough reason not to sell. So we say..let our losses be small and our gains run. 3% loss and 50% runs add up. I honestly can lose about 10 straight trades and just hit about a 20% gain(on margin) and make up for those 10 straight losses. That is the beauty of it. I rather lose 10 times straight than lose big on 1 trade alone. By the way..the secret to making large gains is in margin. I never go full margin on the first purchase. I always wait for the first pullback before purchasing on margin. If it is a fast gainer then I will purchase about 5% above my original purchase price and move my previous stop loss up to my original purchase price. If any of you have questions email me at [email protected]
Take care and God bless all of you. Don't be greedy and you will succeed.
Search for stocks making new 52 week highs. Wait for the pullback and then purchase on the next breakout day on big volume.
Example: GRA - 10/12/2004 breakout on huge volume. Purchased 10/15/2004 on even large volume after the 2 day pullback. The pullback is due to overhead supply. Most stocks will do this after a breakout.
After purchasing the stock I put an immediate stop loss order for 3% below my purchase price. I have since updated that stop loss to the point where I will not lose money on this trade. The number one rule in trading stocks is PROTECT YOUR CAPITAL AT ALL COST. Never let your losses run! That is exactly how I used to lose money. Now I am making money. I am up 20% in 3 weeks which is good considering the current flip flop market. I update my stop loss after every pullback. For example: GRA just broke another new 52 week high on friday. I put a stop loss under that lowest point of the pullback at $11.51. That is right under the low of that pullback. I will continue to do this until the stop is tripped. That is how you protect your gains and prevent massive losses. You have to become a machine. This has to be executed on every trade otherwise your emotions will get in the way and you will lose your shirt. The fact that your stock is going down is good enough reason to sell, and the fact your stock is going up is good enough reason not to sell. So we say..let our losses be small and our gains run. 3% loss and 50% runs add up. I honestly can lose about 10 straight trades and just hit about a 20% gain(on margin) and make up for those 10 straight losses. That is the beauty of it. I rather lose 10 times straight than lose big on 1 trade alone. By the way..the secret to making large gains is in margin. I never go full margin on the first purchase. I always wait for the first pullback before purchasing on margin. If it is a fast gainer then I will purchase about 5% above my original purchase price and move my previous stop loss up to my original purchase price. If any of you have questions email me at [email protected]
Take care and God bless all of you. Don't be greedy and you will succeed.
