After carefully reviewing all the trends in the last 24 hours.......
Here is the strategy I am looking @ for implementation @ appropriate pricing point:
-All rallies should be sold........
-QID to be bought on rally day and sold @ or near low of the day......
-QID not be held overnight......
-On weak day QID can be bought @ open and again sold near low or when profit target are met on an intraday basis...never to be held overnight.
-QID is NOT an investment but a daytrading position.......
-GLD can be traded intraday also......this is a bullion pure play......
-ABX,GG,AUY,KGC,EGO are other gold stock trading strategy...again more of a daytrading strategy.......
-I am expecting S&P & Nasdaq to break below their aug lows & go LOWER in a meaningful way......I am expecting this weakness to continue till mid Jan 08......in an accelerating manner..then stable until all news confirms all writedowns and hope for economy "growing again"....
Can I be WRONG....YES.....
But I am going with with my personal assessment of RISK/REWARD ratio.......
I will be daytrading with 10% exposure only..........
The idea is to AVOID all stocks and BET on CONTRARY positions like QID & GLD......
In my OPINION...even strong stocks are behaving WEAK...as their UP moves are "restrained"
Once or IF we "break aug lows on S&P & Nasdaq.......leaders in tech will take a HIT also "
My strategy is to aggressively position on DOWN move with 10% exposure only......
So....If I am wrong...I am able to minimize my loss.....
But If my thesis is correct...then I will benefit from my "conviction".....
Please DO NOT mimick or follow my strategy.....unless you are willing to lose your entire exposure in this bet.......
Please do your own due diligence & find your own comfort level in this UNCERTAIN market environment.
The ONLY reason that I am detailing my new strategy...is .....because it is the biggest SHIFT/CHANGE in my outlook ever since I started investing first & trading lately......
As usual I will report all my trades if ANY @ 1130 AM & 730 PM...wether it was profitable or NOT.......
This BLOG practices honesty.....Integrity is the GOAL of my BLOG.....
I am KNOWN to follow TAPE....and CHANGE my MIND & STRATEGY on a dime......
I go where "money can be made".....
Opinions do NOT create a DIME...right trade does $$$$
I practice "unemotional trading...and do NOT hesitate to book a loss either...if the strategy is NOT working "
BLOG does not give buy or sell.
Good luck on RETHINKING/ADJUSTMENT in your own strategy !!!!
Saleem
2 comments:
Hi Saleem,
I beleive your opinions are very valubable to all who read them. However, your opinion of us with an opinion on the market may be over the top.
You are a momentum player, who buys at support and sell at resistent. In a market like this you may be convincing investors who buy and hold to sell. That may not be the best strategy for them.
We are in a correction. The S&P is down over nine percent in the last six weeks. The Nasdaq is down more. And the momentum stocks that you reccomend are down even more.
You can turn on a dime and sell or buy back in. Many investors cannot (they are at work). So, in my humble opinion, you may be convincing investors to buy in at the top of a momentum play, and while you're bailing out, they ride it down thirty percent or more. (ie VMW).
To your credit, you always write to set a stop loss. However, many new investors don't know what that means or how important it is. So they don't.
In a market like this, momentum palyers get butchered. Like you. This is a market for value players. When the market stops its decline, it's because the value players are stepping in. And the momentum players are selling at any price.
Don't take offense at anything I wrote, but there are different markets, and your advice in a market like this could be devistating. When it starts up again, then you'll be back in vogue, and I think it will, soon.
And other people with differing opinions than you are not moronic one opinion advisor.
Good luck in all your trading.
tjcpa & tin
Hi Tj & Tin,
Thanks for your interpretation of what I do & what I am saying as a strategy for myself only....I think I am "very clear about that in my post".
I always say... as you noted that please use close STOP.
I also say take profit all the time.
I also say that cut your losses quickly....as I list my loss per share for everybody to see.
I list every trade I do..wether gain or loss.
I have given my reason as to why I sold...and you rightly said that I am a "momentum trader..who is seeing loss of momentum lately"...
Every post I have highlighted in red...do your own due diligence and find your own comfort level.
I also highlight in red that "blog does not give buy or sell"
My BLOG gives an accurate reflection of my personal "opinion of market @ any given time in a very clear manner"
Long term investor or value investor are never concerned about short-term gyrations...wether it is a correction or more.....
As you rightly said you should be picking great bargains if you buy a certain amount every month through mutual fund or personal trades.
CNBC through many interviews/opinion have been giving cautionary words for a long time now.
I do know that investors actually look forward to buying cheaper stocks for long term.
Saleem
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