Earning momentum based strategies can backfire also if you do not cut losses . Just go back and look at MTON, NVDA and GNSS charts they were the earning momentum plays two years ago. Look what happened to them. This file has 98-99 EPS rated stocks for last 500 days till 180 days ago look at them today. If you do not cut losses you will be wiped out.
amazing for you to say that. I join your group in yahoo and now I have left after reading your post letting your losses grow bigger is for loser and idiot like you mrmarket Senior Member Registered: Oct 2002 Posts: 205 06-21-03 08:28 AM Cutting losses is for losers The reason why idiot daytraders cut their losses on their losing positions is because they have no idea what they are buying. Since I am a quantitative momentum INVESTOR, with the elite training associated with my Wharton MBA, all of the financial info I analyze and process reveals to me EXACTLY what I'm buying. So...if a stock I purchase moves into negative territory, that's not a problem. They almost always come back to provide returns superior to the S&P 500. That's why my track record is so amazing. That's why I am $$$MR. MARKET$$$. http://groups.yahoo.com/group/mrmarketishuge/
No its not. Still don't get it do you? There are no investors here. Even though one may utilize the same vehicle, by no means are traders and investors the same. There really is a reason why the IRS recognizes a separate class of businessmen known as traders as opposed to Joe Public citizen investor. You are an active investor. There is a world of difference between what you do and what a real trader does. You make money as an investor, fine. But you're not a trader.
The thing to do with losers is to have enough capital that whatever position you have, it doesn't really bother you. Then, start adding to your position until the stock goes your way. It's called "averaging down" when the stock goes to zero.
Why are you so sure that the person who goes by the handle mrmarket is Ernie? How could you be so gullible?
Ummmmm....since I pick superior stocks, this strategy works for me...the market comes to me. That's why I am $$$MR. MARKET$$$
Some of you guys need to lighten up a little and have some fun. MrMarket is yanking your chains, and you rise to the bait like clockwork. OK, MrMarket, how about explaining what if anything will cause you to ditch a loser. Do you run your existing holdings through your various scans to see if they still qualify, or is it a matter of once in, you hang on to them unless they blow up? Also, what percentage do you allocate to each holding? Is it fixed or does it vary over time?