Forget Bulls and Bears... Be a Beast

Forget Bulls and Bears… Be a Beast

By TheWild1 at 28 June, 2008, 3:05 pm, Categories : Financial Markets

Over the last week markets across the board were in the red. The Dow fell 500 points or 4.19%, the Nasdaq dropped 90 points or 3.76%, and the S&P plunged 40 points or 3%.

But who cares…

Lets forget about bears, bulls, pigs, or whatever they are. Why not just be a beast? A beast has the ability to make money in any market doing whatever they want.

I’ll be the first to tell you that I never short stocks. Just don’t know a lot about it or like the risk, but when some stocks go down others must go up. It is just a matter of giving yourself the best opportunity to capitalize on those shift upwards.

The Results

I recommended three stocks over the last week (DNN, IIT, BTU). Lets see how they worked out during the blood bath that was the stock market.

Dension Mines Corp - DNN

So maybe it was just a .50 point raise. By looking at the chart, you can see the small dip the stock took one day and then the solid rise the net. What if you sold on that dip? Now you missed .50 points. Money is money.

DNN 062808

PT Indosat - IIT

Through the beauty of limit market orders and strict buy targets, we were able to surpass the first negative day only to experience a great one day jump.

IIT 062808

Peabody Energy - BTU

The 5 day charts looks like the Rocky Mountains. Maybe you sold after the initial jump. Maybe you waited it out, but then sold because you were scared of the dip.

Once the week was over, there was a solid 4 point jump or 4.5% increase during that time. The first target was $84. See where it landed.

BTU 062808

Tight Stops or Let them Free?

One of the debates through these up and down markets is whether to put quick stops losses on your investments or let them have some time to run.

It all really depends on your ability to endure losses, your financial situation, and/or time frame.

I wrote an article earlier in the week about not following your stocks on a day to day basis. When you know that you are losing money, the quick reaction for many is to panic and sell too early or do something they will regret down the line.

However, in this market, anything can happen. One day your stock may be down 4 points and the next it will be up 5. You never really know what is going to happen, and the goal is to not fret at first sign of negative gains.

The common thinking is that in the LONG TERM stocks will move on the rise. In this case the long term was one week. Made some nice gains, now we move on.

It is time to relish the the bleeding of the markets, become a beast, and devour the market.