Modification of the Mr Market System

[dalion]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

[skiracer]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

Because a stock makes a new high doesn't guarantee that it will continue to move up. Interpreting the chart pattern at that time in it's cycle is usually more telling as to what to expect.

[mrmarket]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

A stock at its new high is also within 2% of its high.

[IIC]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

You may want to look at my IIC 100's that make new highs everyday

[skiracer]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

Dalion,
Maybe I was a little bit harsh in my previous post. I'm sorry. It wasn't meant to hurt your feelings or to make you feel bad. Hope it doesn't chase you away. Could you please explain what you mean by the highlighted statement. How does buying at a new high save you margin costs?

[Karel]

Wouldn't it be better to buy when the stock make a new high instead of when it is within 2% of the high?

Because I am using margin. I usually save a lot of margin costs by buying when it made the new high. Only when it makes the new high that it will start moving.

Hi dalion, welcome to the board.

A stock that is within 2% of its high is probably "good enough". And it may not be the stock that is picked. Those stocks form a part of a bag of stocks, selected by other criteria. These stocks are then filtered for a short list. The stocks on the short list are researched, and the best one picked. So there are three broad stages, and you'll find the full procedure in 14 steps on http://members.aol.com/ebarsamian/. You'll find my approximation of an older version of the $$$Mr.Market$$$ system in the Reference section, at http://www.mrmarketishuge.com/showthread.php?t=3

And for my broker, margin is margin, whether a stock is making new highs or not.

Regards,

Karel

[dalion]

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Dalion,
Maybe I was a little bit harsh in my previous post. I'm sorry. It wasn't meant to hurt your feelings or to make you feel bad. Hope it doesn't chase you away. Could you please explain what you mean by the highlighted statement. How does buying at a new high save you margin costs?

No hard feelings dude.

My system is slightly different from the marketishuge system.
I buy a stock when it makes a new high. Target price is 10%. Stop loss is 5%.
If i buy at 2% below the high, it might go sideways for 5 days before either going up or going down. That means i waste 5 days of margin loan payment.

On the other hand, i find that if i buy at the high, the movement is really fast. The stock doesn't dilly dally. If it's going up, it'll go up. If it's going down, it'll go down fast.

That means my margin loan payments are usually lower since i waste less time holding a stock position.

It's like failing fast and winning fast compared to failing slow and winning slow.

[skiracer]

No hard feelings dude.

My system is slightly different from the marketishuge system.
I buy a stock when it makes a new high. Target price is 10%. Stop loss is 5%.
If i buy at 2% below the high, it might go sideways for 5 days before either going up or going down. That means i waste 5 days of margin loan payment.

On the other hand, i find that if i buy at the high, the movement is really fast. The stock doesn't dilly dally. If it's going up, it'll go up. If it's going down, it'll go down fast.

That means my margin loan payments are usually lower since i waste less time holding a stock position.

It's like failing fast and winning fast compared to failing slow and winning slow.

I'm always concerned about how I spend my money. Margin interest is not one of my priorities and I use margin for hundreds of thousands of dollars every month. To tell you the truth I don't even look at what I pay in margin. I like to spend the time looking for winning setups and managing the trades. But to each his own and any well thought out plan is better than none.