A Stock A Day

This is why Electric is going to fail. He is changing his rules in the middle of everything...typical novice.

He is getting greedy....I know of many stocks that continue to go down without ever getting a 20% bump...remember he averages down each 5%, so he will need more than a 20% bump! This is a disaster waiting to happen.

Wifey

P.S. Where is Electric?...He did not escape did he? How did he find the flashlight? Did you guys tell him? Please do not encourage him...ok?
 
I must type quietly, I am here at the dept. store and I do not want to wake Charley the security guard. They have a HP hooked up on display...shhhh

Let's analyze averaging down....

Buy 1 share $10.00
Buy 1 share $9.50 = new avg cost basis of $9.75

now we get our bump.....of 20%.... off of $9.75 that is $11.70!... IT WAS $12.00 BEFORE!

Each time we "average down" makes the play just as probable even with a lower high....some might say more probable with each "average down"....caution you must be well capitalized.

Lets analyze a 3-tier "average down

Buy 1 share $10.00
Buy 1 share $ 9.50=9.75 (20%=$11.70)
Buy 1 share $ 9.00=9.50 (20%=$11.40)

Each average down seems to shorten the lower high required to exit......Further refinements could be applied with adjustments to the formula based on the character and volatility of the stock.

I will talk to you later...Charley is making his rounds....got to hide fast....

Michael B.

P.S. remember these are good fundamentally ranked stocks that are having a good value ranking without any negative expected surprises coming up. I will end with this...observe the volatility of the last two weeks in our picks and notice the market is down....you have got my ledger! cya!
 
Electric now thinks he is MrEducator.... Anybody knows that "averaging down" is a loser-investor type of method.

I want my man to win, but I do not understand this stuff, I guess. I need to grab some more boring books off of Electrics shelf. But I really do not understand why you would want to throw good money to bad.... One of his picks will eventually sting him and he will take a huge loss...or should I say enormous :)

Wifey

P.S. I can't find any good trading books to read at the Dept. Store, and I will not go into Border Books for a little while.... plus their security guard never sleeps..

 
SGMS

Electric wants more TLT at these prices....so he will "add to" with his 10k increment at the nearest 100 lot...

Happy trading

Wifey
 
you have a sad, sad life if you are having a conversation with yourself on elitetrader posting under 2 aliases. you make a post, answer it yourself with a different alias, switch aliases and posts again and on and on. As you can see, since no one spare me has responded to this thread, you have issues- seek therapy amigo or get laid. damn.
 
Folks...take a look at wackojackoffs 26 illustrious posts.....maybe 2 of them are meaningful.....go ahead glance with the search function. I am least contributing to this community in a meaningful way.

Michael B.

P.S. As far as my wife she can speak for herself. She does fine.



Quote from wackojacko:

you have a sad, sad life if you are having a conversation with yourself on elitetrader posting under 2 aliases. you make a post, answer it yourself with a different alias, switch aliases and posts again and on and on. As you can see, since no one spare me has responded to this thread, you have issues- seek therapy amigo or get laid. damn.
More...
 
Mr. Jackoff...please allow us to post...as this virtual fund is so fun....I wanted to see how many consecutive losers Electric could pile up...

Wifey

P.S. perhaps the 2000 views were just to see if the flame started yet...
 
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