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Re: Susie924 post# 1

Friday, 12/02/2005 6:18:04 PM

Friday, December 02, 2005 6:18:04 PM

Post# of 249
suzie-let me steal one of my strategies from the lance to english dictionary on position trading..


Posted by: lancebps
In reply to: razal who wrote msg# 12967 Date:12/2/2003 8:16:09 PM
Post #of 180159

those are his strange words for just position trading
a stock and taking profits along the way to either get back your capital or lower your cost average...

example

IDNW

you buy 100,000 shares at .05..

you sell 25k shares at .06 on the first 20 percent move

now you have spent 5,000 dollars...
you have got back 1500 dollars

the 75,000 you have left has now cost you 3500 dollars...

than on the next 20 percent which happened to be this mornings gap you sell 25,000 at .07..
now you got 1750 dollars for that

now you have 50,000 shares left..
you spent 5k ,you got back 3250..
so your capital out is 1750 dollars for 50,000
which puts your cost now under.04...

so now becomes your options ,in an ideal stock move you wait for another move of 20 percent to sell another 25k,but you can change your target to suit you,me personally i like to sell enough from this spot to get the capital back and take a little profit and leave something left to go the distance in case the stock goes and i dont have to pay attention..

in this case i sold later in the day 40k at .07
and now have all my capital back from the 5k investment,
plus 1000 of profits and 10,000 shares left that i dont have to watch and can pay attention to other stocks without a worry in the world of the IDNW shares..

this is my definition of position trading,and only something i will do in a good market..
the goal is to make 500-1000 dollars profit on the trade and
have 10-15 percent of shares left in case a stock goes
from .10 to over 1.00 like the 200 that did in 2000....





[chart]www.profile.ak.facebook.com/v229/1511/20/n1271503258_594.jpg[chart]
Disclaimer-i buy stocks on the advice of my lucky eight ball,please seek the advice of your owns balls before buying anything ....

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