Dawoofdaddy ???????

[SSI]

your thoughts on Jim Cramer

on, channel trading

on trading the emini sp 500

on the idea, of taking an extra 25-50k and short term trading, no more than 5 stocks at a time........ buying near the bottom of channel and selling near the top...... no margin trading....

there is also a book that im looking for,,,,,,,,,, the author was on CNBC a while back.......... he was a Vietnam vet, who came back and worked on the colorado river as a guide........ met a rich guy who taught him how to trade the markets..... absolutely true story..........

he had a pretty sensible strategy of owning between 5-8 stocks (never more) ----- buying when they were priced at 1/2 the value, or when PE value was at 50%...... then re-selling at full value always......... not really sure his exact strategy but was really interested........

sorry for all the questions,,,,,, im just getting ready to get back into the stock market (short term trading)........

also is TD Ameritrade ($9.99 rt) ok?

 

[SSI]

whats your best suggestions on stocks $20 share or less...... and at what % of gain or loss, would you get out.......

want to short term trade these, looking for 5 stocks....... $20 or less to buy around 300 shares each......... doing homework as we speak......

 

[Dawoofdaddy]

Jim Cramer is a very bright guy. I dont watch his show often...maybe 4-5 times a month. He is wild on TV, but he is an entertainer, so dont let that change the fact he is very sharp.

He is tied in with insiders and big money people. Buying his recommendations has to be done with caution, but he will be right more often than he is wrong and some of his winners will be homeruns. Use stops when buying his plays. Maybe the best way to follow him is to understand his "themes" rather than individual stocks.

His books are excellent and should be read by anyone thats going to trade.
Im waiting to see what he does if the market has a serious correction 20% or more over a long period.

Why you are locking yourself into only buying stocks that are less than $20 per share? Gains are gains and losses are losses regardless what the stock price. There is just as much money to be made buying $100+ stocks as it is with stocks less than $20.

Im sure you already know this, but a stock is not "cheap" because it sells for less than $20. Most guys dont sell short, but myself, when trading, Im just as quick to sell short as I am to be long. It makes no difference to me, but with shorting I am quicker on the trigger to take gains and end the trade if it goes vs. me.

When I trade stocks, I always sell if it drops 10% from the price I bought it....no exceptions. Very similar to sports betting (which I lack the discipline I have with stocks), protecting the bankroll is vital. I wish I had the discipline I have with stock trading when betting sports.

Also, this is not possible to do 100% of time, but if I am in profit with a stock, I will usually place a sell stop limit at purchase price, so I cannot lose unless the stock gaps through the stop. If it rises 15% I use stops strating at 10% gain and walk the stop higher accordingly if it continues to rise.

 

[Dawoofdaddy]

Channel trading is something I dont know much about, but what I do know about it, its something I probably would disagree with.

I dont tell the market what to do, I let it tell me what to do, and keeping yourself into channels imho is similar to telling the market what to do.

 

[SSI]

thx woof,,,,,,,, that was alot of the things i did in commodities.........

free trade whenever possible is essentially what your saying..... move stops and let the market take you out.....

that is good advice but not really what im trying to accomplish.....

i was referring to $20 or under stocks, simply because i could buy more shares......

Im more or less looking for around 20 stocks to chart and have in my arsenal,,,,,,,, owning around 5-8 of those at any given time............ no time frames, i dont care to hold for a while...... just the continual rotation of taking profits over and over again......

Ill never forget my old broker saying...... "son, you cant go broke taking profits"............

Ill probably be putting together my list of 20 within a week...... then ill go over alot of back data and charts, looking specifically for supp and resistance....... ive always been a big believer in buying on support and selling resistance, using stops to avoid being killed in a breakout move....

Ill try and list the stocks that im looking at and any of the first buys that i make...........

 

[Dawoofdaddy]

i was referring to $20 or under stocks, simply because i could buy more shares......

Ill never forget my old broker saying...... "son, you cant go broke taking profits"............

Again I dont understand the logic of having more shares. If you have 1000 shares of a $2 stock, 100 shares of a $20 stock or 10 shares of a $200 stock, and both fall 10% you have the same $ bet on the table and make the same $ profit/loss.

I somewhat agree with the cant go broke taking profits mantra, but I also know its tough to get rich picking up pennies...eventually, a homerun has to be hit to make the big bucks.

 

[SSI]

you can get in and out quicker............

if you own 1000 shares, you make $300 on a .30 cent move............... cant do that when you own 10 shares, you need a $30 move......

woof, this is 2 different kinds of trading, that we are discussing...... your talking more of longer term strategy.......... im talking short term......... that is where the difference is.......... doesnt mean that either is right or wrong,,,,,,, and there is a place in one's portfolio for both kinds......

for example, if you bough CSCO at $10 per share, and it got that low..... you could have bought and sold it many times on its way back to $29 (where its at now).......... and you probably would have made more money than simply buying it at $10 and holding it......... say buy at $10, sell at $12, rebuy at $11...... then sell at $15, ........ you get the picture.....


and there would have been nothing wrong with buying at $10 and simply holding,,,,,, say buy at $10, put a stoploss at $9......... then when it hits $12, move your stop to $10 and free trade, while staying in........

2 different strategies, ive done them both in commodities......... homeruns are hit with your strategy but there is more than pennies to be made with mine.............

like i said, 2 different strategies.......... i will eventually include both, just starting with the more active trading........

 

[Dawoofdaddy]

you can get in and out quicker............

if you own 1000 shares, you make $300 on a .30 cent move............... cant do that when you own 10 shares, you need a $30 move......

You need the same % move in each. I still dont see the difference, but good luck with your trades.

30 cents in a $2 stock is the same as $3 bucks in a $20 stock is the same % gain/loss as a $30 move in a $200 stock.