Not a whole lot of strategy in this system

Discussion in 'Strategy Development' started by AshanD, Mar 3, 2006.

  1. AshanD

    AshanD

    If you don't like longer time frames you probably won't like this "system"

    Lets say I'm looking for stocks that have had solid uptrends for the past year or so. Examples:

    AMX
    http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=amx&sid=0&o_symb=amx&x=0&y=0

    NVDA
    http://bigcharts.marketwatch.com/qu...=nvda&sid=0&o_symb=nvda&freq=1&time=8&x=0&y=0

    ET (this one in particular is beautiful. Something to do with the name?)
    http://bigcharts.marketwatch.com/qu...symb=et&sid=0&o_symb=et&freq=1&time=8&x=0&y=0

    Stops are are 10% as well as discretionary if the chart pattern starts looking bad. I'd expect the average holding time to be several months in order to shoot for greater than 10% gains.

    Do you think a simple buy and hold system like this would perform well? The charts just scream at me "bet on me continuing in this direction" I would think buying these trendy stocks for the long term could be quite profitable.
     
  2. Have you invested any of your $8,000 yet?
     
  3. AshanD

    AshanD

    where did the $8000 number come from?
     
  4. AshanD

    AshanD

    You have an elephant's memory, I didn't even remember that. I'm up to 11k now and it's returning a meager 4% or so until I find a good strategy that I'm satisfied with (probably won't be this year, no joke)
     
  5. bitrend

    bitrend

  6. Well, the reason I ask is because back in July you asked the same question and I suggested Latin America which is up 45% since then. BUT the same issue still remains. These are all momentum stocks and you either have to track them very closely or be ready to lose 5-10% with some large stop. It just depends on your style. You're trying not to lose your principal and keep looking at the possibilities and the possibilities keep passing you by. I understand that. Been there, done that. Just put 2-3K in some fund then, instead of some momo stock. Then 3-6 mos later put another 2-3K again. Do that 3-4 times and you're fully invested with much less worry than you're having now.
    Good luck!

     
  7. AshanD

    AshanD

    Thanks for the advice. I'm not interested in funds any more because I want to do my own stock picking. I think as long as I make an effort to actually follow a method I've learned here or from other sources I will find something that suits my style. But with so many different styles (spydertrader, praetoran, acrary...) i find myself jumping around trying to learn everything without actually applying anything. I think (not sure though) that by next year I'll have something worthy of trading real money on.