Forum Archive Index - September 1999

[Stuart Cairns <stuart.c@dfmainland.co.nz>]

Thanks Brent, mechanical selling is better for me for two reasons:
1.      Once I have a profit, emotion often overcomes good judgement. Automatic 
rules dictate when to sell to eliminate this    possibility.
2.      Without mechanical selling I spend to much time analysing every little 
change in the price of the stock I own. I should be     spending the time 
finding new opportunities, not being concerned about old ones.

Stuart H. Cairns
email ; stuart.c@dfmtrade.com
tel 64+9+307 9066 fax 64+9+307 9061
See how the Blue Horsehoe portfolio has returned
15% in less than two months
http://www.dfmtrade.com


-----Original Message-----
From:   Brent Wheeler [SMTP:brentw@bwcl.co.nz]
Sent:   Thursday, September 23, 1999 8:08 AM
To:     sharechat@sharechat.co.nz
Subject:        Re: [sharechat] The Back Door

Agree Stuart.  Also worth bearing in mind that, in general stocks fall in
price much quicker than they rise, ie once over the mountain top they can
plummet even tho' the ride to the top has been slow.  This does suggest
mechanical exit is a good idea.  One way to do this is, if you use m.a's to
get in (even if backed by fundamental and gut stuff) when it comes to exit
signals, close up the periods over which m.a's are calculated to make the
signal quicker reacting.  Using exponential m.a.'s may help too since they
weight more recent activity higher than older.  My last comment to Briens
dilemma may also help - essentially a money management approach.

Brent

Dr Brent Wheeler
Director
Brent Wheeler & Co. Limited
AUCKLAND


--------------------------------------------------------------------------
To remove yourself from this list, email sharechat-request@sharechat.co.nz
with "unsubscribe" in the body of the message.


--------------------------------------------------------------------------
To remove yourself from this list, email sharechat-request@sharechat.co.nz
with "unsubscribe" in the body of the message.