Lew - with the market being down the last couple of days, do you feel that now is even a better time to invest in the stocks you mention above (eg KMI or others)? [Reply]
Originally Posted by Peter Gibbons:
Lew - with the market being down the last couple of days, do you feel that now is even a better time to invest in the stocks you mention above (eg KMI or others)?
Absolutely not. Traders should only trade with market momentum. I enter positions on up swings.
Many of those positions I listed would have been stopped out the past few days and I mentioned the market being very over-extended so progressive exposure is key. You don't go from cash to 100% invested when trading. I start with 20% exposure, see if my trades are working and increase from there. I retreat to cash and find more setups I like, re-enter when they confirm upward movement and manage risk with each trade, NEVER averaging down because that's just guessing without protecting your capital. There's absolutely days when the market is red and setups aren't confirming that I just sit on my hands.
Remember, these are trades. If I am looking for long positions I go by fundamentals and will buy on dips on occasion, but these posts are not that. [Reply]
Originally Posted by lewdog:
Absolutely not. Traders should only trade with market momentum. I enter positions on up swings.
Many of those positions I listed would have been stopped out the past few days and I mentioned the market being very over-extended so progressive exposure is key. You don't go from cash to 100% invested when trading. I start with 20% exposure, see if my trades are working and increase from there. I retreat to cash and find more setups I like, re-enter when they confirm upward movement and manage risk with each trade, NEVER averaging down because that's just guessing without protecting your capital. There's absolutely days when the market is red and setups aren't confirming that I just sit on my hands.
Remember, these are trades. If I am looking for long positions I go by fundamentals and will buy on dips on occasion, but these posts are not that.
Your explanation makes perfect sense. Thanks for coaching me up - much appreciated! [Reply]
Originally Posted by Halfcan:
I am thinking of dumping Apple- I am up big on it and it has not done much in a while.
Should I?
I'm of the opinion that it's a good core stock. It's generally not going to tank and it goes on occasional runs. It's one of my highest performing stocks over the past several years, but I don't notice it much because it never makes a big splash. It just keeps going up. [Reply]
