I'm a subscriber to The Daily and follow your plays right along with my portfolio. My question is this: how do you define the time frame for each of your plays? For example, if you've highlighted a stock which is looking to break out of its handle, but it doesn't today, do you continue to follow it without commenting on the stock in the next The Daily? (March 8, 2001)

  The way we approach investing is to let a stock or a play show us it is going to work before we put money at risk. We want to see the breakout of the pattern, the break down from resistance or crash through support. When we see the move occur, that is when we enter the play. Thus, we do keep a running list on eSignal of the plays we are watching and we set alarms to alert us by computer or email when the target is hit. We include a note on the alert as to what volume we need or any other particulars we were looking for. Then we can call the broker or get online and look at it ourselves.

As long as a pattern holds up or the play is still developing as we want it to, we keep it on the watchlist. By setting alarms or telling our brokers what we are looking for we can keep up with the plays. We don't review each play every night; if it tanks out of the pattern and never gives us the entry point it is time to flush it. The reason we play patterns and support/resistance is to get an edge; if the pattern breaks down, it is no longer giving us an edge so we move on to plays with better potential. If a stock continues to develop and starts looking good or breaks out and is still a buy, we will comment on it in the reports unless we see even better plays popping up. Today's technology really helps to keep tract of more plays, but you still have to review the plays to see which ones you have the most confidence in and know what you want to do when the breakout or breakdown occurs.

Previous Page Next Page

Return to Table of Contents

Legal Disclaimer