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Post by cosmic on Aug 10, 2010 20:28:41 GMT -5
What compelled me to add to MPG today? Well I've attached the chart. We retraced 61.8% from the high after a confirmed sell on the daily, so it's a good place to start the position. With MPG it's a fast mover and moves MORE than the S&P, so it exaggerates. I see another opportunity tomorrow as well. I had planned 3-5 buys. Attachments:
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Post by maxi on Aug 10, 2010 20:44:21 GMT -5
Could you explain how you buy then? Do you buy x number of shares and then 2x and 3x etc? or equal amounts as it falls? What is the best strategy for buying? I am of course assuming it will go lower. If it did not go lower how would you do your other buys?
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Post by cosmic on Aug 10, 2010 20:52:27 GMT -5
I usually do 3 buys of something, unless I'm deeply wrong about how low it will go. In this case, we have a pretty established range of 2.50-3.40 or so. So my favorite range would be in the middle there... 2.80-3.10 give or take? I was watching the fibs and mostly went on gut but using that overlay.
I usually do exploratory shares for the first batch - maybe as low as a few hundred, just to see how the algos are responding - that was yesterday. It took my order too fast at 3.10 and it was a low share count. Today it took a while at 2.81 - a looooooong time. Did double the shares, but still low. I have a maximum $ I will invest in this play. If I average and hit the maximum, I stop and hold.
This is one of my riskier plays but I watch MPG a lot so I sort of have a feel. Usually that feel is pukey lol.
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Post by maxi on Aug 10, 2010 20:59:49 GMT -5
Thanks Cos. I might try it that way sometime. I usually go 50% in and then less as it falls. I think that it prolly basackwards tho... ;D
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Post by dino on Aug 11, 2010 11:14:56 GMT -5
I'm glad you posted this Cos as I was going to send you a pm asking why the early buy on MPG when Demark was showing purple counts. Looks like you're using a combination of indicators with maybe the 9th Demark count (and possible buy arrow) as a buy spot?
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Post by cosmic on Aug 11, 2010 11:32:45 GMT -5
Part of it was earnings, and I knew there would be playing with it - which is also why the early exit and the lack of holding even though there were some nice gap ups.
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Post by maxi on Aug 12, 2010 10:17:19 GMT -5
which is also why the early exit and the lack of holding even though there were some nice gap ups. Does this mean you sold? |
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Post by cosmic on Aug 12, 2010 11:58:28 GMT -5
No still holding most recent purchases - had previously purchased some in the 2.50-2.70 range for the last pop over $3
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