SELLING NEWS
BUY SWKS AND KOMG
Today is a perfect illustration of the difference between the pros and amateurs. While amateurs are excited and jumping in, the pros are quietly selling the news. And I am the biggest amateur of all, buying in pre-market and paying the highest prices. I think I have been in the market long enough and experience sufficiently not fall into this kind of trap. Here are a few things to remember: (1) be aware of selling the news; (2) when excited, take a walk; (3) never bid in the pre-market, it almost always fail; (4) the first half hour is always tretrearous, better late than sorry; and (5) don’t buy cheap and weak stocks.
Having said that, what to do with the mistakes. Should I cut and run or should I hold the positions and hope the market will continue to move upward? My thesis was that the election will result in a 10% run for the overall market and technology will take a leadership role. This scenario does not appear to materialize, because the market does not look rigorous, and technology is certainly not leading. On the stocks, SKWS had a weak Q3 and not very aggressive Q4 outlook, and it lacks catalyst to move up in the near term; While KOMA had a very strong quarter and a healthy outlook, it has a pretty good run already. The potential gains for both before Q4 seem to be limited. This, plus that my original idea is for a trade, basically determines that I have to dispose them in the near term. Be opportunistic and look for selling into strengths.
I continue to find this is so difficult to execute and trading seem not fit my personal temperament. I am lack courage to BUY LOW and too greedy to SELL HIGH. I think that summarizes my shortcomings. Therefore, I should continue to try to avoid trading and focus on investing, and never lose sight of the objectives.
Today is a perfect illustration of the difference between the pros and amateurs. While amateurs are excited and jumping in, the pros are quietly selling the news. And I am the biggest amateur of all, buying in pre-market and paying the highest prices. I think I have been in the market long enough and experience sufficiently not fall into this kind of trap. Here are a few things to remember: (1) be aware of selling the news; (2) when excited, take a walk; (3) never bid in the pre-market, it almost always fail; (4) the first half hour is always tretrearous, better late than sorry; and (5) don’t buy cheap and weak stocks.
Having said that, what to do with the mistakes. Should I cut and run or should I hold the positions and hope the market will continue to move upward? My thesis was that the election will result in a 10% run for the overall market and technology will take a leadership role. This scenario does not appear to materialize, because the market does not look rigorous, and technology is certainly not leading. On the stocks, SKWS had a weak Q3 and not very aggressive Q4 outlook, and it lacks catalyst to move up in the near term; While KOMA had a very strong quarter and a healthy outlook, it has a pretty good run already. The potential gains for both before Q4 seem to be limited. This, plus that my original idea is for a trade, basically determines that I have to dispose them in the near term. Be opportunistic and look for selling into strengths.
I continue to find this is so difficult to execute and trading seem not fit my personal temperament. I am lack courage to BUY LOW and too greedy to SELL HIGH. I think that summarizes my shortcomings. Therefore, I should continue to try to avoid trading and focus on investing, and never lose sight of the objectives.
posted by ZIGZAG at 11/03/2004 02:03:00 PM
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