Swing trading... lessons learned...

[Websman]

Poorman is more of an investor than trader. He let's stocks go down sometimes to 20-30% and a trader wouldn't allow that. So sometimes his patience pays off when the stock comes back but when it doesn't, it doesnt.

I never let mine go down more than 5% or 10% for a small position. Poorman is a millionaire. I am not.

[B.J]

Spike! Explain that avatar!

[spikefader]

Spike! Explain that avatar!

Just felt silly this week, and last couple days like I was goin' mad These also express the feeling I had:

[skiracer]

Poorman is more of an investor than trader. He let's stocks go down sometimes to 20-30% and a trader wouldn't allow that. So sometimes his patience pays off when the stock comes back but when it doesn't, it doesnt.

His discipline is to look at both sides of a stock, technically and fundamentally, and to base his decision on both of those factors. I feel that he leans much moreso to the fundamental side of the coin as the determining factor and when he believes in a stock will give the positon alot more room to mature into what he feels it will and can do. In a sense he is alot like MM. Once he enters the position he lets it run out to his target. Sometimes that entails letting it fall 20/25 %. Call it patience or a pre-arranged plan before entry but I think it is much more of a pre-planned strategy with targets and exits built into the plan beforehand. He would never let a position run down to 0. There is a limit in his mind, but he is flexible in considering all the factors that go into his decision making process. He finds an extremely high % of low priced stocks before they hit everyone else's radar.
Patience is just another word used for expressing emotional control of your situation. Some have more or less that others for many different reasons. I think that his comes from knowing an a very strong belief in his research and setups.

[Websman]

Man I'd love to hear more about this from ya Webs. Get specific if you have time dude. Patience is something we all need to be reading and focusing on. What is patience in trading? Where does it fit in? Certainly it is patience relative to our own trading rules that we set for ourselves, but there's an enormous amount that can be written by way of example of the things that happen to us that clouds that patience, that even confuses us about our own thoughts of whether we ARE being patient. The mind plays funny tricks on us humans.

And a Vulcan's perspective would be a wise perspective. I don't know Poorman's perspective, but I'm sure it's worth reading too

One of the main factors for me is to have the patience to wait for a proper entry point. It's natural to want to jump into a stock that is climbing only to watch it fall back from your buy point. It takes patience to watch it go up without you and to wait for a pullback.

Poormans is a very wise trader. I would recommned anyone studying his trading style. He's almost as huge as Mr Market, but I'll bet he doesn't have 19" biceps like the huge one does.

[B.J]

What does everyone think of ARRS here? Snatched a bit up today.

[Websman]

What does everyone think of ARRS here? Snatched a bit up today.

I bought ARRS today at $9.99.

[B.J]

I bought ARRS today at $9.99.

I did too. Went down to the 9.70 range, and then I added. Looks like the 50 DMA is providing support.

[spikefader]

What does everyone think of ARRS here? Snatched a bit up today.

I'd be looking elsewhere, sorry! But good luck gents.

[B.J]

Been a busy morning... snagged some TIII on a pullback, not too much though.

Bought some EZPW coming out of a triangle as well.

Also beginning to ease back into VPHM.

[Websman]

Been a busy morning... snagged some TIII on a pullback, not too much though.

Bought some EZPW coming out of a triangle as well.

Also beginning to ease back into VPHM.

Nice job on EZPW. How did you find it?


I usually agree with Poormans buy points, but did not on TIII. I'll buy it if it bounces off the 50 day MA at around $2.55 - 2.60. It also has a gap in the $2.20 range that could fill.
Hold on a minute... I'm starting to sound like Spike... If only I weren't to lazy to post a chart to back up my analysis.

[spikefader]

.. I'm starting to sound like Spike... If only I weren't to lazy to post a chart to back up my analysis.

Here ya go!

[B.J]

EZPW was listed on the model trading strategy among "possible buys". Looked at the chart and saw the triangle, with a strong move the day before. I figured a move was in store today, but wanted to wait until just when it cleared the upper triangle edge to confirm (15.9-16), and that's when I got in.

TIII, I feel that way too about falling knives. I never go all in on them, but if it's a strong stock that can about-face at any time, I will nibble (1/3 position tops). I will wait for the 50 DMA before I start adding more. Could turn into another AOB though, so I have a short leash.

[B.J]

Nice job on EZPW. How did you find it?

By the way, it didn't turn out to be such a nice job. Taken out this morning, and I didn't come across the coverage note ("sell" rating) until afterward. I usually ignore those, lift stops and let the market do what it does.

But, I'll stalk again, see how it continues...

[B.J]

Out of RWC, as it hit my trailing stop. Downside break of a descending triangle.

Stops can kind of suck. The stop price was 7.40, and it filled at 7.20. Necessary evil, I guess.