Sunday, November 7, 2010

Adding to ideas that work

Adding risk to something is an unfamiliar action that most people will never understand or even want to try to understand.  Only add risk to something that is working.

Took a stake in PCX the other day.  Added to it at an attractive price and the market told me I was correct both times.  I will wait  patiently until the market tells me I am wrong, when the market tells me I am wrong I will exit the trade.  In my opinion this is absolutely the only way to trade.

Have a look at what I saw:

On Thursday I purchased after at 14.51 towards the end of the day on a monster rally that showed me money instantly.  Bought more on Friday at 14.76, the market again showed me I am correct.  (note opening range strategy works in any time period)

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