Copying Trader Mike's Strategy- not getting too excited in buying  

Posted by Book Eater

Quote for the day:

"The average man doesn't wish to be told that it is a bull or a bear market. What he desires is to be told specifically which particular stock to buy or sell. He wants to get something for nothing. He does not wish to work. He doesn't even wish to have to think." ~ Jesse Livermore

Lesson: Always think for yourself. Don't listen to anyone's advice.
Rule #1
Posted by Michael on July 7th, 2003
Posted in: Stock Market
I’ve had this rule taped to my monitor for the past 3 years: On gap-up openings, buy above the 10:00 high. That rule has saved be a lot of money. When I started trading, I’d get all excited when I saw the futures flying pre-market. I’d rush in to buy at the open, thinking I’d get in before the market ran away from me. Almost invariably I’d buy near the high of the day. Somewhere in my reading I came across that 10:00 rule (for some it’s 10:30), and I’ve followed it ever since. (The opposite of this rule holds true for downside gaps.) The market makers and specialists often play games with the retail buyers at the open. So I think it’s always a good idea to let the opening furor die down to see what’s really going on.

Today's a volatile session with the DOW ranging 237 points yesterday, closing on top 90 pts.
My trade plan:
1.) Sell GEO at around 1.38, or better. Lighten down first.
2.) Proceed and observe around 11:30 whether to buy back the shares. significantly exposed to the stock which is not such a good thing.

There's one thing about greed. You tend to be overbullish when you shouldn't be.

Stock trading shouldnt be about maximizing gains but minimizing risk.

thats what will save all of us.

I didn't follow quite a good risk/reward strategy for GEO. bought more than im supposed to be positioning. Need to lighten this down with the short rally.

- Nix

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