Session of 01/26/2007

[David Randolph]

LOCM on fire! Anyone else catch it?

At least Tokyo did, congrats

Perhaps I made a bad judgment of the importance of the deal ... perhaps it can be huge ... ooppss, it's Friday, feeling overwhelmed, will not analyze or buy or sell anything more today. It was a great week though, you guys are great !

Will leave the board open until 4:15 pm, I wish you good trades

[David Randolph]

Not sure about the news and not sure about the chart. The business is cool though. Good luck !

[boatguy]

OPBL large insider buy 400k

[tokyopua]

sold LOCM for even minus commisisoin, losing momentum

[boatguy]

That was fun

I saw the news and the stock went from 3.07 to 4.48-

I try to get in and out fairly quick on a pop like that and I always take some off  on the way up.

Applaud Tokyo

[David Randolph]

sold LOCM for even minus commisisoin, losing momentum

I think you entered without the information needed to be in a stock with somewhat strong hands. I see you taking steps in what I think is the right direction, but I wouldn't go to too much short term and just momentum driven trading. That can drive a man insane and not give him much profits.

The man writing this, once in his lifetime, made 30 to 40 trades in a normal trading day. He regrets that time. Did not learn anything and didn't make any meaningful money (at least he did not keep it for long).

I think the way to go is to look for technical and fundamental disequilibriums combined. Not easy, but the way to go ... for example, news out, what's the impact of that news? Stocks move initially and most players don't know what they're doing, and in that time, someone with the fundamental background is making calculus and estimates. That someone will be one of the first to assess the significance of the impact of the news on the fundamentals and make a more secure trade, because he knows what he's doing, or at least he knows why he's doing it, instead of doing it just because everybody else is doing the same. 

[David Randolph]

That was fun

I saw the news and the stock went from 3.07 to 4.48-

I try to get in and out fairly quick on a pop like that and I always take some off  on the way up.

Applaud Tokyo

Yes, fun stuff, and a great move too, especially for the ones with the news first. Why did you get in just at $4.23 if you saw the news at $3.07?

Still, from $4.23 to $5, awesome day trade, congrats boatguy

I see you get many news very quickly, where do you get them from? Thanks.

[nica33]

sold LOCM for even minus commisisoin, losing momentum

I think you entered without the information needed to be in a stock with somewhat strong hands. I see you taking steps in what I think is the right direction, but I wouldn't go to too much short term and just momentum driven trading. That can drive a man insane and not give him much profits.

The man writing this, once in his lifetime, made 30 to 40 trades in a normal trading day. He regrets that time. Did not learn anything and didn't make any meaningful money (at least he did not keep it for long).

I think the way to go is to look for technical and fundamental disequilibriums combined. Not easy, but the way to go ... for example, news out, what's the impact of that news? Stocks move initially and most players don't know what they're doing, and in that time, someone with the fundamental background is making calculus and estimates. That someone will be one of the first to assess the significance of the impact of the news on the fundamentals and make a more secure trade, because he knows what he's doing, or at least he knows why he's doing it, instead of doing it just because everybody else is doing the same. 

Applaud David!!!   Very interesting words!!

[boatguy]

2 orders didn't fill my 4.23 order was .10 above the price when I placed it.
 
If you look at the 1 minute chart you can see it went up in very few trades

[tokyopua]

sold LOCM for even minus commisisoin, losing momentum

I think you entered without the information needed to be in a stock with somewhat strong hands. I see you taking steps in what I think is the right direction, but I wouldn't go to too much short term and just momentum driven trading. That can drive a man insane and not give him much profits.

The man writing this, once in his lifetime, made 30 to 40 trades in a normal trading day. He regrets that time. Did not learn anything and didn't make any meaningful money (at least he did not keep it for long).

I think the way to go is to look for technical and fundamental disequilibriums combined. Not easy, but the way to go ... for example, news out, what's the impact of that news? Stocks move initially and most players don't know what they're doing, and in that time, someone with the fundamental background is making calculus and estimates. That someone will be one of the first to assess the significance of the impact of the news on the fundamentals and make a more secure trade, because he knows what he's doing, or at least he knows why he's doing it, instead of doing it just because everybody else is doing the same. 

I will be the first to admit that I am just learning here.  In the case of LOCM, I actually did look at the balance sheet and Income statement first before buying, and that was the only stock I bought today besides FUEL.  I did look at the site and I had used it before, and since I see no obvious advertising there, I thought that they found a great way to monetize.  

So there was some study, as much as can be expected in this short time.  The rest of it was just watching the 5 minute candlestick chart.  I acgtually had a sell in for 5.16, I was too high with it.  On the other hand, even though I did OK on CNLG yesterday, I really didnt know what the news meant there, so I need to rethink things going forward.

But I got lucky today and lost only $20 in commissions, so I will like that small wound and hope I learned something.  Thanks as always for the sage advice David, I will go back and watch more of your videos to keep learning how you make the choices.

[David Randolph]

Ok, lets close this for the week. The 3 Stocks on Fire Portfolio was up again today, to an overall gain of 37% in its first 6 days of trading, from $15,000 to the current $20,575.

Beginner's luck or is there something more here? We'll see. One thing is for certain, it wouldn't have been possible without your help, bringing in the right suggestions.

So thank you, have a great weekend