Friday, August 3, 2012

Have to try our something a little different

I need to use the money more efficiently and wisely. My main problem has been putting large amounts of money in the stocks that move in the wrong direction.

There is a rule that says When in uncertainty cut your position. Especially if the stock is showing strong RS in the case of shorting.

Start with a small position in uncertain position or better do not enter the position.

There are plenty of opportunities in the market. I almost make 20 percent in ARNA but there was not much money invested in it. This is a problem because cash was stuck with other stocks. I need to have cash available when I need it.

This diversification is not a good strategy. It is good to put money where you are making money. Do not buy more unless the stock moves in you direction or you are super confident technically.

I have to put my money where I can get money. I have to choose the best stocks instead of jumping around and losing money.

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