What do you mean by "aggressive" play? What do you look for in order to buy into the stock as an aggressive play and what are your rules for loss stops? (May 19, 2001)

  An aggressive play is one that is either a play before a stock breaks some resistance point (i.e., on a breakout) but still has good potential to move higher, or it is one that has already made a good move but could add to the position on further momentum. For example, if we see a stock move higher and then come back to test support, the more aggressive investment would be to jump in when it starts back up off of that support level. The safer entry point is after the stock clears the breakout high on strong volume: it has beaten potential resistance again. Several aggressive trades we have made of late involve the beaten down former leaders that have started to recover but still have a lot of overhead supply out there and their recoveries are not certain at all. They are still working on their bases, but are in a good position to give us a nice gain in the shorter term. Those are more aggressive because the stock has not cleared all of the potential resistance.


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