General Trading
I am new to eons (I just joined tonight!) and this is my first post.
All of my stock trading is done in my IRA. I began trading stocks after the company I worked for sold the manufacturing plant I worked in. This occured late in 2001. I rolled my entire 401(k) plan into an IRA and started a new 401(k) with my new company. The timming of this transition to an IRA account influenced my thinking on stock investing heavily. Observing how much stocks declined in value immediately after 9/11 would have scared me out of the market completely were it not for the rapid price rebound many stocks experienced afterwards. I don't think a buy and hold strategy is valid in the current investment climate and may not be for some time to come since valuations in stocks can rapidly decline in the aftermath of a major terrorist event. Such an event could occur again any time in the near future. I therefore think it is much safer to day trade or only hold a position for several days at most.
I only trade one stock at a time. I try to identify stocks which: (1) are at or near the bottom in a price cycle, (2) fluctuate by at least an average of 2% of their value daily and (3) have a trading volume average of at least 5 million shares per day.
My profit objective is 2.2% return per month. 2.2% is what I use because this compounds to 30% annually. In this I include any dividend payouts I may receive by holding a position more than a day or so and interest my assests accumulate while parked in a money market fund.
Since I only trade in my IRA, I cannot shortsell. I do not consider this a serious problem although I do feel if shortselling were available to me I could improve my return considerably.
In 2002 and 2003 my returns did not reach my 30% objective although I did make money (12% in 2002 and 19% in 2003). In 2004 I achieved 32% and in 2005, a wonderful return of 39%. This year is promissing to be a good one unless I make some serious blunders in the remaining trading days left.
Stocks I have used successfully this year are GM and ALCOA. December has been something of a tough month for GM with Kerkorian liquidating his enormous position, but I do anticipate a rebound before the end of the month to at least the low 30s along with improved volume and price volatility.
I would love to hear from others with different takes on the market and what strategies they employ.
I do consider myself a Contrarian in that the more popular a strategy may become, the less likely I am to use it.
Good Trading!!
happytobehere
All of my stock trading is done in my IRA. I began trading stocks after the company I worked for sold the manufacturing plant I worked in. This occured late in 2001. I rolled my entire 401(k) plan into an IRA and started a new 401(k) with my new company. The timming of this transition to an IRA account influenced my thinking on stock investing heavily. Observing how much stocks declined in value immediately after 9/11 would have scared me out of the market completely were it not for the rapid price rebound many stocks experienced afterwards. I don't think a buy and hold strategy is valid in the current investment climate and may not be for some time to come since valuations in stocks can rapidly decline in the aftermath of a major terrorist event. Such an event could occur again any time in the near future. I therefore think it is much safer to day trade or only hold a position for several days at most.
I only trade one stock at a time. I try to identify stocks which: (1) are at or near the bottom in a price cycle, (2) fluctuate by at least an average of 2% of their value daily and (3) have a trading volume average of at least 5 million shares per day.
My profit objective is 2.2% return per month. 2.2% is what I use because this compounds to 30% annually. In this I include any dividend payouts I may receive by holding a position more than a day or so and interest my assests accumulate while parked in a money market fund.
Since I only trade in my IRA, I cannot shortsell. I do not consider this a serious problem although I do feel if shortselling were available to me I could improve my return considerably.
In 2002 and 2003 my returns did not reach my 30% objective although I did make money (12% in 2002 and 19% in 2003). In 2004 I achieved 32% and in 2005, a wonderful return of 39%. This year is promissing to be a good one unless I make some serious blunders in the remaining trading days left.
Stocks I have used successfully this year are GM and ALCOA. December has been something of a tough month for GM with Kerkorian liquidating his enormous position, but I do anticipate a rebound before the end of the month to at least the low 30s along with improved volume and price volatility.
I would love to hear from others with different takes on the market and what strategies they employ.
I do consider myself a Contrarian in that the more popular a strategy may become, the less likely I am to use it.
Good Trading!!
happytobehere
