If you've been trading for years and know how stocks work why wouldn't you short when opportunity presents itself? You're not a trader, rather an "investor". Nothing wrong with that but you're limiting your gains (by not shorting) and incurring (paper) losses during declines. Earlier you said "Um I make $500/day daytrading". Then you say "If I sold all my loser stocks after 2.5 weeks I would never make money. I make money by holding stocks and then when they tank (as some do) for no good reason I buy more while they are cheaper." So in one post you imply you're a daytrader and then in another post you imply you buy & hold.
Exactly. The only thing that is consistent with his posts is that he is inconsistent with his theory.
I'm just curious--at what point would you sell a stock, and at what point would you buy it? You DO have a philosophy, do you? Or is it simply buy and never sell, because the market always comes back? If it is the second one, I can guarantee that you will eventually lose a great deal of money. That does not make me a bear, just someone who hates riding stocks down (or hates watching stocks shorted keep going up). I did that when I first started out, and learned that I hated losing money more than I liked being right. Tell us about your strategy-and be as specific as possible.
When I sellected these five stocks on June 15th the nasdaq was at 2100 and the fed was about to announce rates, after which the market surged higher that day. I figured the market would rebound and I took a risk and recommend the five stocks on the basis that: a. the market was almost or at a bottom before the fed rate hike and that my stocks would surge afterward when the markets rebounded. b. the stocks shown consistant performance for years. All were up well over 200% since 2005. c. Companies were growing rapidly and profitable. Using those three sets of information, I made my choice. I sell before earnings IF the stock rallied heavily after the previous earnings. If Hans for example surges 100% after last earnings, I would sell most of my stake before next earnings becasue there is too much pressure for the stock to outperform. I also sell if the stock plunges on bad news such as a change of business model or missed earnings guidance. I also sell if the stock goes up 'too quickly'. Sometimes a stock will surge 6-15% for 2-4 consecutive days towards the end of its runup (often indicated by consecutive gapping white candles). The stock often collapses thereafter in what is called a 'moment of reversal'. But-it CAN rebound later although this can take many months or years depending on the magnitude of the selloff.
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Excellent post JHO, and here is what describes stocktrader to a Tee. Stocktrader, there is nothing wrong with being a rookie. Just learn from it instead of trying to justify it.