@mouse that's awesome insight, thank you. And by all means, any...

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KDoc

1,050 Posts.

01/05/16

08:49

Post #: 17643982
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Originally posted by mouse ↑

My trading plane depends on why i'm buying the stock in the first place and also what the chart say's.

Catalyst stocks:

These types of stock's i buy normally just to sell on news, i don't care about what happens after as long as i make coin out of it. For instance, i had bought NWH weeks back knowing that an announcement was coming out and that it would make the SP move, today on open after the announcement i sold and didn't look back. Stocks are always best to sell on open IMO, and this type of play i don't stress if the SP comes back cos i know there an ANN coming

Then there is trend stocks:

Once a trend has been identified, i always go after the mid cap at the cheapest MC... The positions are large and the volume is there to manage it, if I'm right about the trend then i should bag which gives me the confidence and capital to go after specks.

VMC i entered in the low 20's just after DKO ran to 14c, only half but was pretty confidant with both so when DKO released the results i knew i had to get more VMC... Now day's i do my buying is always a Friday midday or afternoon, if the price has not come back but looks like selling then i wait till next Friday. For some strange reason i have noticed that Fridays are sell days.

The only times i buy outside of that rule is when a chart says it's supported or i notice a major retrace, any stock with a retrace after a run in a hot trend is buy IMO and even more so when the MC is cheap.

Selling on trend stock is a hard decision, it all depends on how hot the trend is. Normally i like to see between 3 & 5 bags on these plays and if I'm lucky i will see a few more. Always try to find a value on stocks as this is the best way to tell you where the SP could head too, easiest way to do that is compare it to others, have look at charts and see were others have tapped out at, translate the SP to MC and now you have something to work off, i then give a discount of 20% to the value as a buffer zone. Once it's in that zone then it's by by and on to the next one.

The only time i add to a stock is when i have bought half, the only time i buy half is when I'm unsure what the SP will do or the MC looks a little high otherwise I'm all in.

Let me know if you want more info

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@mouse

that's awesome insight, thank you. And by all means, any thing more you want to add to that, I'm all ears.
2 Upvote

0 Great analysis

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