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rjm77me

P&P Score: 99.94 Points: 616.65 Accuracy: 77.28% Average Pick Score: 0.89 Annual Return: 32.85% (94.05% since 7/16/09)

rjm77me's Blog : Please do not let a trade turn to an INVESTMENT and do not turn an INVESTMENT in to huge loss

November 15, 2010

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The heading says it all
Before buying a stock decide if it is for a trade or an investment - both have different tarding styles.

Trading means a time of 30 minutes to few days
An investment could be termed as 5 to 6 months in my book. In todays world buy and hold is kind of dead.

Both requires active money management.
Example
I bought SPR on Friday at 18.17 and it is a hold in 401K for 50 days or at least 5% up side
Bought YGE in 401K again for 11.19 and have added a GTC order at 11.92
Will I get them - time will tell - chances are 70% - that is based on last 3 months of data.

I heard Jim Cramer bad mouthing CSCO as he was bullish before earning and was stomping on CSCO - well it is like sour grapes - some trades do turn bad and does not mean company is bad
An example I bought AKAM at wrong time at 19.50 and it decided at take a dive on earning and ended up taking 8% loss - guess what It turned the corner and went up 3X in one year - so stomping on a company does not help - take a deep breath and make a trade - profitable or cut loss
Please do not cry for past wrong moves - it will take you down and one will fail to make money
Have a fun day and do not pull your hairs for bad trades

Tags : AKAM CSCO YGE SPR MRK FAS JCJ

3 Comment(s):

rjm77me

November 15, 2010 11:12 Abuse this post

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Why do I post my real trades - one reason - No one wants to look stupid in front of an audiance of 500 folks - It helps me think twice before placing a trade
Be brave and share a trade with a trading buddy. It is magical= you are being accountable - example share with a spouse - if you have one

rjm77me

November 15, 2010 11:26 Edited: November 15, 2010 by rjm77me Abuse this post

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Took profit on TBT jan 30 to 40 call spread - cost was 4.50 - sold spread for 6.39 - held for 10 days
Will be buyer of TBT still at any time - may be move to a different spread like 35 to 43 call spread limit order with debit of 2.74

rjm77me

November 15, 2010 14:44 Abuse this post

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order was filled Will be buyer of TBT still at any time - may be move to a different spread like 35 to 43 call spread limit order with debit of 2.74

Sold the spread for 3.11 limit order - ok for trade for 3 hours (3.11 - 2.74 -.04 = 33 cents) 33 cents ok on $2.80 investment for few hours or $33 on $280 investment

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