Tuesday, October 03, 2006

Placing bets

I've subscribed to some great newsletters and read some top notch blogs with great material. Often, the best stocks are ones that consistently show up week after week. I have been screening several of the stocks below for a couple of months now. BITS, RWC, EXM, FTEK, CMED, HITT, COGO, SWHC, GIGM, and BLK have performed very well over the last two months and I personally have made money with 4 of them. I will continue to look at these stocks while searching for new winners.

I have a few criteria that I use when I place a position.

I usually start with a third of my risk capital in a basing pattern. On a breakout I add another third, after a pull back to a major moving average (10, 20, or 50), I add the final third. I finally use these averages or obvious technical support to base my sell decisions. I always use mental stops, unless I'm not going to be able to be at the computer for days at a time. Making money as a long term trend follower requires discipline, and the more experienced I get, the more I don't want to sit in front of a quote screen all day, looking at intraday fluctuations. It's all just noise to me. Give me a daily or weekly chart at the end of the day and I will make my decisions for tomorrow.

Here's the list that I've compiled for today.

BITS
RWC
EXM
FTEK
CACB
XING
MTEX
CMED
HITT
COGO
BIDU
SWHC
GIGM
BLK
ACTS
HDB
ETP
GGAL
ACAS

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