That's what I've been saying all along. Buy stocks that go up!! Don't hold losers in your portfolio. Why do I need to know anything else? KISS
Elite Trader School
- Thread starter longandshort
- Start date
Problem with that theory, in time every stock becomes a loser, every stock has a correction.
The bigger the fall the greater the buying opportunity.
A sell level for some is a buy level for others.
Frequently the best buys on hindsight were the least obvious.
I wish I could trade on hindsight. Next best thing is to go with the flow. Sure every stock has a correction but with my cloudy crystal ball I don't know when the correction will be over. I just trail stops and go to cash. Every so often I catch a runner. I don't need that many in a year.
Hindsight not required.
When the market or a stock is running hot, then you're too late.
When the market or a stock is running cold, that's about right.
Pease porridge hot, pease porridge cold,
Pease porridge in the pot, nine days old;
Some like it hot, some like it cold,
Some like it in the pot, nine days old
I mentioned once before - I've been trading 20+ years. Tom DeMark has been trading, with some of the biggest trading firms that have ever existed, for over a half century. He'd (and Paul Tudor Jones, Steve Cohen, Leon Cooperman etc) would be disappointed to know someone thinks his indicators don't add real value. Not.
Clearly you haven't done your homework on this. Or just sour grapes you can't afford them on your Bloomberg.
How wide is your trailing stop? Is it different for each stock?
When a stock runs hot is the time to take advantage of the opportunity it presents.
When a stock runs cold I could be tying up my capital until it runs hot.
Nine days!! I don't like to leave it in the pot that long.
It depends on price and volume and the direction of the market in general.
It gets wider as the stock advances. Swing lows to start with, then a break of the fifty day moving average and finally the 30 week MA.
I look to take a bite out of the middle of a move, so it really depends on how each stock moves.
If you are far less informed than the average analyst or fund manager, how exactly are you going to outperform?
What is less informed?
I know a lot less than funds managers, and analysts. But I know something they don't know. The quality of the information is more important than the amount.
If what I know is very important, it might be the reason why I beat managers, and analysts. A lot of the knowledge that funds managers and analysts have and I miss, has no real impact on the performance. So I don't need to know all they know.
I will give you an example:
I assume that Pfizer has more knowledge about medicines and vaccines than Biontech. But it was Biontech that created the "Pfizer" vaccine against Corona. Biontech is a dwarf compared to Pfizer and needed Pfizer because they had no money to fund the research themselves. But Pfizer would never had a successful vaccine without Biontech. Because Biontech knew things that Pfizer did not know.