[LGNDPRINCE]

please help me, I'm losing all my $$$$$$. Just when you think you have a good company it starts the tank...Any companies you guys have positions in that are doing pretty well...only the companies whos share price is below $20 though..Later

 

[LegendGS]

My advice (read opinion) to you is to go 100% cash until the market is able to maintain a sure footing. There are stocks out there that have weathered well, but besides the fact that I don't like making recommendations, if you have ANY position in the market (especially if it is a trade rather than investment) you will need to keep a hawk's eye on it through the current market climate (even more than usual), and maintain a discipline to get out at the first sign of trouble.

 

[LGNDPRINCE]

Yeah believe me I have definatly gotten burned not getting out when the graph shows signs of a down trend...But I'm quickly learning (the hard way)
PS. Yeah I got a cash account luckily

 

[LegendGS]

Yeah, now would be a good time to practice the graph reading. I know I have to sharpen that pencil.

 

[Train]

There are 2 schools of thought when it comes to investing. There are those who are traders and others like to buy and hold. My opinion is that unless you're a stock broker who can monitor the market every second (read the average investor), the only way you're going to make any real money it to buy for the long term. I read an article awhile back that said that the buy and hold strategy is the more sound of the two, not to mention financially rewarding. Having said that, one of my friends is making very good money (bought an Audi TT with his profits from one year) as a day trader and this is just his hobby. He just has a real good knack for spotting the gems. If the buy and hold strategy is the approach you're going to take, now might actually be a good time to get in on the action, since stocks are generally low and it's probable that share prices will go up assuming you invest in a sound company. You just have to be prepared to ride the wave.

 

[LegendGS]

Yes. At this point, if you were to adopt a buy and hold strategy, old names that are proven leaders in their industry like Coke are the safest, but like Train said, you would have to be patient with the waves.

Add one more school of thought to the list, and that is one that sits between day trading and holding. This IMO is the best balance if you can afford a little time each day to follow through. From the fact that you are reading charts, I'd imagine that you have enough interest and time to make that balance. The hardest part of it all is maintaining a buy and sell discipline (usually meaning going against your first instincts).

 

[LGNDPRINCE]

I do have time to check the graphs constantly through out the day, which leads to my stradegy...I'm holding long positions on the well know stocks (mostly techs) which are taking a beating right now but will make a tremendous come back (hoping to cash out pretty well on those/buying now at a very low price) I'm also looking a penny stocks which I'm trading daily getting a few $$$ here and there. I normally play very short positions on those. So basically I'm trying to find a balance between the two..

 

[LegendGS]

Good luck with it.

Just one additional note though. Be careful with tech stocks that skyrocketed in the past, and have fallen greatly. Obviously there is no way of predicting, but there is no certainty that they will bounce back, and if they do how long it will take. Keep your eye out for new leaders that may be showing strength in adversity. Chances are that these MAY be the ones that wake up when the sleeping bull does.

 

[Train]

The hardest part of it all is maintaining a buy and sell discipline (usually meaning going against your first instincts).

Yeah, and that also means setting limits for yourself, like selling when the stock shows a rise or drop of 15% or some other arbitrary percentage no matter what. A lot of times, people get greedy and if their stock rises, they hold onto it too long hoping that it'll keep going up. Or if it drops, they have too much pride to sell at a loss and hope that it'll rebound. More often than not, they end up with the short end of the stick.

This is just my opinion here so I take no responsibility for your actions. If you're looking at penny stocks to hold short-term, you might want to do some research on up and coming pharmaceuticals. Take a look at their history and what products they might be developing (and what stages these products are in). A lot of times, if a company is developing a promising product that is, for instance, in final developmental stages or awaiting FDA approval, you'll see a spike in their stock. For the most part, this is just hype, and the final verdict will be decided when the product is released to the public. So conceivably, the stock can fall just as quickly as it rose if it isn't well-received, which lends more support for the short-term buy strategy. Just my $.02.

BTW, speaking of stocks and being that this is a Legend board, have you seen Boiler Room? Pretty good movie and as a bonus, there are even a couple shots of a G2 Legend coupe in there.

 

[HATE_ME_NOW]

OHHHH Boiler room was good!

 

[Guest]

once I finish modding the Coupe i'll start saving and investing.. Most likely in IRA's and in a long term mutual fund... Hey i'm only 20, but the reason I was able to attend college and have 2 Acuras both paid for (1st one was TL but got totaled) is all due to the smart investing moves by my Dad and Mother.. He did day trading for 2 years and one day I think in 99 he made 20K... That really amazed me... ahhhh 99 was a good year..