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Peabody Energy Corporation Message Board

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  • livermore1929 livermore1929 Nov 28, 2011 12:07 AM Flag

    Here is a case in point..................

    Two cases in point, with the primary factor being they acted in a way that they should not have.

    The first was FCX in late January 2010, the market was in a correction, down and down she went, who knows why, it doesn't matter why, those were the facts.

    One day I woke up, went over to the office, that would be down the hall, and started looking at the metal stocks because as deep industrials they fall hard and fast, all were down, except FCX, a leading copper miner.

    The stock was up .25 in heavy volume 3X the normal volume, it was a buy signal right out of the play book - Reminesences of a stock operator - 1923.

    I went long, and bought calls too, buy the end of the day the stock was up 3.00, it was the end of the correction, over the next months the gains were good.

    The next case was PALL, an ETF for Palladium, another industrial metal, it was going along fine and up with the market as it should have, and then one day it didn't, the market was up, all the metals were up, but PALL was not, it's not acting as it should, sell it, no questions asked.

    The next day it opened down 10%, they added more shares.

    You sound as you're all anout the momentum, which is great, so was jessie livermore, but he had very strict rules, as there is very little room to mess up in the momo game, as often the stocks are very dangerous in nature.

    You absolutly must read those books I reccomended in the other post three times. The other being, how to make money in stocks, although don't feel the need to hold a stock "for a minumum of six weeks", if it acts badly, sell it.

    And go with sogotrade, they are $3.00 a trade, and don't be afraid to be in cash, cash is a position, and often a very good one.

    Jessie had some basic rules for going long, the stock must be going up in higher volume, a sister stock must be rising (GM & F) let's say, and the market must be rising in good volume.

    The same would be true for going short, and he made 100 million in the 1929 crash, so he is perhaps more remembered for shorting.

    However, ten years later he was bankrupt, and a year later he ended his life, so remember, each trade stands alone, a string of wins means nothing other than more capital, you get away from the basics and one bad trade can really mess up you're game.

    Lastly, Jessie said, amongst many other things, there is a time to go long, a time to go short, and a time to go fihing.

    You may want to open up an account with ameritrade and fund it later,perhaps much later they have some really great research tools in think or swim, and other platforms also.

    You'll do well, let history be you're guide, nothing changes on wall street.

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