Tuesday, December 30, 2008

We've Come a Long Way

Doesn't it seem like yesterday when the Dow Jones Industrial Average hit 7400, and the world was wondering when the sky was going to hit the ground? I actually never thought in those terms at the time since I was busy making some of my largest gains of the year in various equities.

But as the market began to recover, I noticed that people were not so eager to jump back in to a market that had left some totally devastated. I can't blame them with all the talk about hedge funds and naked shorting running rampant under the seemingly blind SEC. The retail investor, it seemed, was going to have to take things into their own hands and out-smart the wall street big shots.

Well, we may not of turned the tables in the larger sense, but we have certainly taken more control of our own financial well-being with some very prudent trading. I like to think of us as a new class of investor testing the waters of a new market: a market that has been erased and is being rewritten on a base of new hope and inspiration.

I don't want to sound like a motivational speaker, but sometimes I can't help being optimistic. If we are careful with our buys and find the right entry, and then find the right exit with a stop-loss in place all the way, we should be able to build some wealth out of all this. But that is the key: entries and exits.

I let Stock Assault 2.0 find the potential equities, and then I do my stuff. Your "stuff" may be quite different. From what I have read, many of you are thoughtful investors, and have a lot of insight into this game. I'll help as much as I can with what works for me, but you have to find what works for you. Let Stock Assault 2.0 do it all for you, if you wish, and learn along the way. We have come a long way, but we still have much ahead for us.

Have a good New Year!
- Roger

3 comments:

  1. Hi Roger,
    When you look at Yahoo Finance for futures activity to give you a clue on direction before the market opens, what are you looking at as far as index, etc. to get that info.? Thanks
    Jerry

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  2. Hey Roger

    Happy New Year! I'm going to buy SA soon. I was wondering where do you normally have your stop loss? Say If I have an A/A+ pick, where should I apply it as I know that some picks go down before they go up.

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  3. I don't look at the futures at all. I open my broker's data feed and observe pre-market trading/volume to get an idea of where it is going to move at open. As far as a stop-loss is concerned, I pull the trigger when the stock starts to move up consistantly, and then I place a 5% stop. If it is in a strong trend with ADX over 30, then I change to a trailing stop.

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