Friday, December 31, 2010

notes for 2011 strategies

when there is light volume -- find the support lines and buy those (i.e. buy on weakness near trendline)

when stock is strong, look for breakout and buy on strength. 
 Buy momo stocks on 3 bump pattern and breakout  (set tight stop)

on intraday weakness:  look for 3 tight higher lows to enter.

Your Edge:

My greatest edge, which I can use or not use, is my patience.  If I know a stock is worth more, I have no pressure to sell it until it reaches my price.

 And my second edge, my small size, allows me to exit my entire position for the top price.

 My edge crumbles when I lose patience and want to exit a temporarily losing position, or take profits too early.

thinking back:

First thing I want to remind myself of is this:

 Many trades I made that I eventually sold went on to become winners.  Many were based on value.  They just took longer.

 Many I bought too early and got trapped too long.  I didn't wait for a clear - 100% clear support line to enter on -- so that the position didn't drop too far. 

 Many the size was too big so the drawdown was too uncomfortable.

 When I look back -- I think I have more of this mistake -- selling too soon.  Always selling too soon.  Especially with winners. 

 My edge requires letting profits run.  Think about that for 2011