The force is strong with you, my sentiments, exact
Post# of 11899
Posted On: 02/06/2014 6:02:05 PM
The force is strong with you, my sentiments, exactly.
I have many times expressed my opinion of the best way in which long term investors can accumulate slowly and take a position in a stock, but I would agree that the ideal situation for any investor, (even traders believe it or not), is to eventually have gains such that you can safely take roughly half of the position off the table and get your original capital investment back! Then how you play tactically and technically with the "houses money" is up to the individual's risk profile. Obviously this is easier to accomplish in micro cap stocks than big board stocks because the micro caps see gigantic gains AND gigantic losses (volatility) both ways more often than do the safer big cap tickers. However no matter what the percentages taken off and/or put into a stake, over the long term, the ideal is to only use the original capital to generate gains so as to use that NEW capital to make further investments; that is how a long term investor grows the portfolio. Sometimes taking unrealized losses is a key part of the game, and often a necessary one in order to stay in long enough to realize the stock gains. It's an art, not a science though IMO too many short term day traders out there have been led to believe it is a science and somehow the technical chart and mechanistics will necessarily allow them to completely play any ticker like a fiddle, but such is just fanciful nonsense. It takes Jedi-like powers of the mind to UNLEARN what you have LEARNED and feel the force flow through you so the confidence can allow you to make long term gains naturally.
If there was some exact way to always day trade and flip your way to gains predictably every single day then everyone would do it and then it would immediately not work for anyone. That is the nature of the market and of all things.
Luminous beings are we, not this crude matter.
GLTY
$RFMK
I have many times expressed my opinion of the best way in which long term investors can accumulate slowly and take a position in a stock, but I would agree that the ideal situation for any investor, (even traders believe it or not), is to eventually have gains such that you can safely take roughly half of the position off the table and get your original capital investment back! Then how you play tactically and technically with the "houses money" is up to the individual's risk profile. Obviously this is easier to accomplish in micro cap stocks than big board stocks because the micro caps see gigantic gains AND gigantic losses (volatility) both ways more often than do the safer big cap tickers. However no matter what the percentages taken off and/or put into a stake, over the long term, the ideal is to only use the original capital to generate gains so as to use that NEW capital to make further investments; that is how a long term investor grows the portfolio. Sometimes taking unrealized losses is a key part of the game, and often a necessary one in order to stay in long enough to realize the stock gains. It's an art, not a science though IMO too many short term day traders out there have been led to believe it is a science and somehow the technical chart and mechanistics will necessarily allow them to completely play any ticker like a fiddle, but such is just fanciful nonsense. It takes Jedi-like powers of the mind to UNLEARN what you have LEARNED and feel the force flow through you so the confidence can allow you to make long term gains naturally.
If there was some exact way to always day trade and flip your way to gains predictably every single day then everyone would do it and then it would immediately not work for anyone. That is the nature of the market and of all things.
Luminous beings are we, not this crude matter.
GLTY
$RFMK
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