CKE Restaurants, Inc. (Delaware Holding Co.) CKR (NYSE) $18.13 $-0.04 -0.22% $3.70 in 2003. $18.06 today.
My point is that I would not buy it at this level, like so many stocks. And that 2003 presented a unique opportunity, that comes around once, or twice if you're lucky, in a lifetime. Phelps Dodge is another example. $10 to $120 in the same time frame. Lock down the profits when they run into the 1000% percentage range in three years.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=axr&sid=0&o_symb=axr&freq=1&time=6 and for all the communists... http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=jdo&sid=0&o_symb=jdo&freq=1&time=7
It sounds so easy in theory. "10000000% gains in 3 years". Thing is, many of these stocks are mighty volatile, especially when they were low priced. +/- 5% price swings daily are not a rare occurence. You need balls of steel to hold on to them, especially when you're up 50% and it drops 12% within 3 days on general volatility. I bet only a handful of people hold a stock like that from $2 to $80 for 3 years. The thought of giving back huge gains is too nerve wrecking.
Volatility can be great sometimes. If I can hold a stock for years then profit can be great. I recall my most profitable trades using smaller positions, wider stops and holding the position for years. Overall I estimate I lose 60 % of the time. Few big winners offset many losses. My method shows losing trades and losing streaks but overall shows significant profit. It is difficult when I encounter a losing streak. I avoid discussing trading with my friends and neighbors because they laugh at me. I visit EliteTrader because some EliteTrader members understand and support me.
Exactly! Great post. Seriously. I posted a thread about money I left on the table with respect to stocks I sold too soon. Why did I sell them too soon? Because they ran up quite a bit in a short stretch, and I panicked when they pulled back sharply and quickly. My fear of losing my profit caused me to cash out too early.
wasnt Jed(i) one of the ghost companies they had created in Enron to take all the losses? I didnt know they were public!! Those guys at Enron really had us all over a barrel.