New Kid in Town -- My market strategy for maximizing profits

[The Kid]

I just sold a small portion of my CCBI holdings at $20.74 I only got a partial order filled, then the stock slipped below the sell point -- Hate it when that happens.) Having bought it only seven trading days ago at $19.29 (see plan in first post,) I saw a 7 1/2% gain in a little over a week. That is to say half the target rate of 15% in far less than half the time. In my humble opinion, that is a successful trade. The annualized gains on seven and a half percent in seven trading days is, if I may say so myself , rather huge .

With thanks to the Huge One for turning me onto two of these stocks, I am currently looking into AXL, LU, ADSX and PRX.

Happy investing,

The Kid

[mrmarket]

I just sold a small portion of my CCBI holdings at $20.74 I only got a partial order filled, then the stock slipped below the sell point -- Hate it when that happens.) Having bought it only seven trading days ago at $19.29 (see plan in first post,) I saw a 7 1/2% gain in a little over a week. That is to say half the target rate of 15% in far less than half the time. In my humble opinion, that is a successful trade. The annualized gains on seven and a half percent in seven trading days is, if I may say so myself , rather huge .

With thanks to the Huge One for turning me onto two of these stocks, I am currently looking into AXL, LU, ADSX and PRX.

Happy investing,

The Kid

According to another poster on this board, if you don't get your 15% within four to six weeks, it is not a successful trade.

[stenzrob]

I just sold a small portion of my CCBI holdings at $20.74

WHY? Was there a technical reason, is the stock now fully valued, was this your target all along, or what? Your diary entry serves no purpose to me or anyone else if there is nothing I can learn from it.

Having bought it only seven trading days ago at $19.29 (see plan in first post,) I saw a 7 1/2% gain in a little over a week. That is to say half the target rate of 15% in far less than half the time.

Looking at the chart, you could have done a lot better by selling for a 4% gain after only two days. I have bought stocks that have gone up 2% in the first ten minutes after I bought them - should I sell for the immense annualized gain? Once again, this is not even a plan, much less a strategy. My impression is that you're just somewhat randomly trading stocks picked by others.
see http://www.yourdictionary.com/ahd/p/p0065200.html
parasite:
1. An organism that grows, feeds, and is sheltered on or in a different organism while contributing nothing to the survival of its host.
2. a. One who habitually takes advantage of the generosity of others without making any useful return.
2. b. One who lives off and flatters the rich; a sycophant.
3. A professional dinner guest, especially in ancient Greece.

[The Kid]

"According to another poster on this board, if you don't get your 15% within four to six weeks, it is not a successful trade."

Huge One, I, and I would think you, politefully do not agree with the 'other poster' regarding this trade.


Stenz, my boy, are you calling me a parasite? I thought we were fast becoming friends. I have seen many others state their buys and sells and percenatges in here. Am I being held to a higher standard by you?

To answer your question, yes, I saw it was up more in less time. I debated pulling the trigger then. I didn't. I went in to the trade planning on following the advice on Mr. Market. However, having realized half the gain in less than half the time, I pulled out as I was not as huge as Mr. Market and others on CCBI. I still own it, just a smaller amount.

I am sorry I am not able to talk about stocks as proficiently and detailed as you can. I came to this sight to learn, listen and make money. I hope to stick around so that I can learn from others in here like you and Mr. Market. You two have apparently been very successful. I would like to be that $ucce$$ful.

Lastly, can you please do me a favor before you inconsiderately call me names again? Ask Mr. Huge how many members there are here at the website. Next, note how many views a lot of these threads get and how few replies/posts there are. Did it ever occur to you that the true parasites are the ones signing up, buying all the recommendations at the prescribed times, making money and NEVER contributing? Have you ever thought of that? They are the silent parasites.

I like to write. I like to talk. I like to listen. I like to trade stocks. I like to read your advice and that of others. But I don't like to be called names just because I like to place posts on a message board. Silly me. I thought that's what message boards were for.

[The Kid]

I have just sold half my DHI position at $42.97 this morning -- Monday. As posted earlier, I bought it twoo weeks ago on a Monday at $39.20. While I still LOVE the company, I sold my half position this morning as I have realized a 9 1/2 percent gain in only two weeks. Looking at the company's chart, that is a decent two week run-up for this very successful company in a short time. I still believe in the company and have a position, but I never shy away from a nearly ten percent gain in two weeks. Following the advice of the Huge One, I will now re-invest the money in PRX, another company I heard about here, and LU, which I have followed for a very long-time. Both have dipped around 8% in the last two weeks, providing what I believe to be good entry point.

Happy and prosperous investing to all.

The Kid

[Dave]

One easy way to maximize your gains on $$$MR. MARKET$$$'s picks is to simply follow the price closely and use a trailing stop-loss as they go up. Using this method you could continue to ride a stock with good momentum for some extra % gains with minimal risk. Just be careful to adjust things along with general market trends.

Dave

[The Kid]

Thank you, Dave.

I think I will do that with the rest of my DHI holdings, as I really like that company.

Continuing with my plan, I picked up the Huge One's selection, PRX, at $67.85 this morning. That is more than 6% off the price the stock was at when it was recommended on this website. As the fundamentals look very sound to me, I think I got it at a very nice price. If it continues, as predicted by the Huge One, to rise from here, I can get out with a 15% gain at $78.03 instead of waiting for $83.70 to experience the same 15% if I had bought it at $72.40.

With very quick research, it appears about 85% -- not 50% -- of the Huge one's selections this fall have gone down below the price he bought them at before gaining the 15% he looks for. Although this is only based upon recent data, I stand behind my method of waiting for his recommended stocks to slip a little before buying them.

His picks, obviously, have proven to be very $uce$$ful. All I am trying to do, as noted in the first post of this thread, is to expand my profit potential while down-sizing my risk on his selections. If I continue to buy his quality stocks using this plan, I think I will be able to thank him by buying him a huge tray of meats and cheeses for the holidays.

Continued happy and prosperous investing,

The Kid

[The Kid]

Just sold my VLGC at $2.23. Since I got in at $1.84, I sold it for a sweet gain of more than 21% in less than two weeks. I know Stenzrob thinks this one could really fly, but 21% in thirteen days is an amazing annualized gain and I will take it.

I put the proceeds and those from more of my CCBI holdings (4% gain in three weeks) to a purchase of SSNC, a stock in the Huge One's Thanksgiving dump that I really like.

I note only a few people have voted in the poll above. Please feel free to. So far, in less than a month, my plan has been working out quite well. I post my trades not to boast or brag but just in case any of you wish to 'play along at home'. If any of the members wish to follow my plan (getting in to VLGC at $1.84, CCBI at $19.29, DHI at $39.20 and PRX at $67.85 all seem to be wise decisions now,) please feel free to. Not only would you be richer to have done it, but you don't have to worry about me calling you a parasite, as my stated goal when I joined is that we all become rich and live on the same island as the man who invented the pet rock.

Happy Thanksgiving,

The Kid

[Dave]

I think if you back-test this a bit you will see how it may be flawed. The problem is, and I think Stenz said this as well, that if you wait for a pullback to buy, you can miss out on a solid winner. What can also happen is that the pullback can last a LOT longer than you want it to. I can give you a nice example: NCEN. I used the HUGE one's methods and picked this one, and bought it at a post-split price of around $26/share. I then sold at a post-split price of $29/share, and then it abruptly pulled way back to around $23/share. I thought, gee what a great time to buy! Well, I did, and 4 months later, I finally sold. During that time I missed out on 4 other winners that I would have bought had I not been "stuck" in NCEN at the time. I did not mind being "stuck" in NCEN, as it is a VERY solid company, but that pullback lasted a LOT longer than I had hoped. I guess what I am saying is, you win some, and you win some that take a lot longer than the other ones you win, but if it is working for you, that is all that matters!

I, for one, appreciate you posting your buys and sells, as most people don't do that.

-Dave

[The Kid]

Dave,

Thanks. I see your point, and acknowledge I may miss some high fliers with this approach. In your example, it seems you made your profit, buying at $26 then selling at $29, but then you wanted to re-load on the same stock. I am not sure if it still met the Huge One's criteria at that point. I understand what you are saying about being stuck in a stock, so I am currently holding six-seven so I can hopefully always get out of something if I NEED to buy another stock. From what I have seen, it seems most of the Huge One's stocks have gone down a little after he purchased them, so until proven otherwise, I will stick to the 'plan.' It has worked so far.

Happy Thanksgiving,

The Kid

[stenzrob]

It has worked so far.

Indeed it has. Keep up the good work, Kid.

[The Kid]

Stenz,

As I am sure you know, it is so hard to 'read' people over the internet. Therefor, I am unsure if you were being complimentary (due to the recent results).....or sarcastic (due to the short period of time the results have accumulated.) Therefor, I will reserve comment on your comment.

[Dave]

Stenz is a nice guy, I am sure he meant it as it reads. I might add one thing, and that is to make sure when your target stock pulls back some, it is not based on news. I would say that method would work well if you are careful and buy only the ones that pull back for no apparent reason, or along with the market but at a greater percentage. If you buy a stock that pulls back because of missed earnings, or perhaps a good but not great earnings report, then you may get stuck in it for 3+months. With NCEN, I got stuck because of a general pullback in mortgage-related stocks, even though the raise in rates and slowdown in refis did not affect NCEN's production. I am not smart enough to predict interest rates and such, or how the street will judge their affects on a stock, so there was little I could do.
A good example for this would have been HELE. It was bought prior to earnings, and was on a nice uptrend. They missed only slightly, and pulled way back. Had you bought at its lowest point or around 19, you could have sold shortly after for a nice gain, even though it is still 2.50 below the original buy-in price. Had you not picked that lowest point, you would be stuck in that one probably until next earnings report. Of course if you opted not to buy because it pulled back for a reason, then you would be safe and looking at the next one...

Sorry for the rambling and stuff, but I am hung over.

Dave

[stenzrob]

Just sold my VLGC at $2.23. Since I got in at $1.84, I sold it for a sweet gain of more than 21% in less than two weeks. I know Stenzrob thinks this one could really fly, but 21% in thirteen days is an amazing annualized gain and I will take it.

You're applying "mr market" style trading to "stenzrob" picks, which is not appropriate. My picks are designed to be home runs, but some will strike out. The key is, when that one sweet pitch right down the middle comes, you've got to swing for the fence, Kid. You got in cheaper than I did, but my patience may be paying off, since VLGC is up another 20% today on record volume. First I was patient sitting on it from $2.01 down to $1.75 because the trend was still valid, and now I will be patient to take my profit.

[The Kid]

Stenz, I hear ya. I know VLGC could be huge. I also know that unfortunately, I do not have unlimited cash. I really wanted to buy another stock yesterday, thus I had to sell something. Selling a very volatile stock I had made 20% on in two weeks seemed like the way to go. When I start looking backwards and having regrets about very profitable trades, that is when I am in trouble. As far as applying the Huge One's principles to one of your stocks.......well, I guess that is what makes it my trade. If I had made twenty percent on one of the Huge One's stocks in the same short time period, I would have been very happy. I am still very happy. VLGC....CBBI.....URBN......it don't make a difference to me, as long as the end result is CASH.