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All time highs

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sponono
Super Contributor
I have always been an advocate of buying stocks the minute they cross to all time highs but I have never taken my own advice. Q: Why? A:Fear. Today I decided to take my own advice and buy a stock at an all time high seeing I have waited for a correction and it does not seem to be coming. Good luck to me!!!
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14 REPLIES 14
Rams
Super Contributor
and you will tell us what stock?
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sponono
Super Contributor
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asylum
Super Contributor
and now that you have bought the correction will come, its a guy called murphy, he alaways waiting for an opportunity lol
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sponono
Super Contributor
Livermore says traders fear when they should hope and hope whey they should fear. I'm very afraid that my decision is wrong which means I must hope I'm right. May the stop loss be with me.
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Rams
Super Contributor
sometimes, its not hope or fear but disappointment...as long as you taking profit at at least three times your stop, you need neither hope nor fear i think
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sponono
Super Contributor
so if my stop loss is 2% I should take profit at 6% right? dont think so. I think a trader should listen to the market for a sell signal. Listen: A trailing stop loss is a much better idea.
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Rams
Super Contributor
then you will have to be right more than 1 in three times...otherwise most times you will just break even and be disappointed with all the effort put in.Yes, i agree you must lock in profits as the trade moves in your direction but the final exit must capture the bulk of the move giving you a 3:1 profit/risk ratio.
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ndabs
Frequent Contributor
LOL.....Tell me you're joking(about all time highs)! I wouldn't dare do it on a stock like Naspers, that would scare me. Got in at R14.95 as it made new highs and was initial looking at selling at R16.50.... It looks like we're safe for now To be honest I like the company and thinking of getting into it long termish.....
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Rams
Super Contributor
Well, Garth Mackenzie is long on Naspers at the new high...something about facebook and a golden cross.
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ndabs
Frequent Contributor
I speak for myself.... although RMI's trend doesn't go too far back but i trade such better, whereas NPN has been a bit all over the place in the past 12months. I'm not that confident
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Rams
Super Contributor
yes..he was a bit concerned so went long only 2 SSF. But its different with investing...all time highs go even higher...look at CPI, APN and KIO
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sponono
Super Contributor
let tell you a very sad story: I bought KIO at an all time high of 390 in October 2010, got scared and sold very soon, my stop loss never triggered. Look at it today; all I had to do was hold and adjust my stop loss I would have made a killing with the dividends as well. Worse still I went short NPN at R200 in 2010 because it looked too high; was stopped out quicky when the stop triggered. I keep a list of all stocks that have hit all time highs, 76 of them; only 4 of those 76 are out of the money today.
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Rams
Super Contributor
and thats why its better to have a mechanical trading system...just brainless you and the chart?
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ndabs
Frequent Contributor
And a mechanical trading system that works for you!
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