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Magal Security Systems Ltd. Message Board

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  • sirmick69 sirmick69 Apr 29, 2004 6:53 PM Flag

    Re: LONGS AND SHORTS. PLEASE READ

    Interesting discussion here.
    Some ideas:
    1. There are NO rules to follow. It's personal.
    2. Never ever become a pig. You have a small profit close and move on.
    3. If it goes against you, get out IMMEDIATELY!! Cutting losses immediately is the most important issue of all.
    4. Never hold positions overnight.
    5. Do NOT trade on Fridays if you can help it.
    6. Watch constantly the trade in relation to the 20 and 50 EMA on a 1 or 5 or 10 min. chart. Remember that all traders watch these charts continuously. Know how to interpret support and resistance levels. Try to figure out what make cause a breakout one way or the other.

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    • Mick: Or anyone. I am not a daytrader. Before the days of screens and streamers I would buy a stock and check it a couple of times a year, Usually it would have gone up 20-50%. What has happened to buy and hold?
      Is that principle gone forever?
      Thoughts on that subject anyone?
      Pretty interesting discussion and a very straight forward board compared to others on yahoo.
      What are your thoughts on scur?
      I think it has potential for a rebound (another security stock).
      Still Magal has not begun to penetrate the market. Would buy and hold apply here?
      What ever phenomenon caused it to soar, could it happen again?

      • 5 Replies to pinkneygirl
      • happened to buy and hold?
        Is that principle gone forever?


        Now that the internet makes trading available to everyone at a low cost there are far to many people playing the market to just buy and hold. too volatile. Heck after the bubble burst in 2000 the doors were basically shut to anyone with 25k or less with the implementation of rule 431. It was like a casino who opened up and everyone lost their money then they closed down. If someone comes in this market trying to invest they are crazy IMO.

      • Hi there Pinkney;
        My opinions on the subject:
        The burst of the bubble in 2000 should have taught everyone a most important lesson : THE STOCKMARKET IS ABOUT BUY AND SELL (OR SHORT AND COVER), NOT ABOUT BUY AND HOLD. IMHO, it showed us all that profits accumulated over many years can be wiped out and even turn to losses in a month, a week or even a day.

      • "What has happened to buy and hold?
        Is that principle gone forever?
        Thoughts on that subject anyone?"


        Bear has been in hibernation since oct 2002

        But there are signs he is waking up

        If so, you have been his first snack!

        He ate the semis first in his last rampage too

        Look at nasdaq weekly charts - note how nas first crossed the 200 weekly moving average 16 weeks ago.

        But note since that time, it has not spent ONE SINGLE WEEK above it, and it has only closed above it for 5 of those 16 weeks

        It has spent the last 8 weeks struggling with the 20 week ma, which had been complete support in the rally

        Has this been a bear market rally, in a bull cycle of a secular bear market?

        We shall see...

      • I think MAGS can have a very bright future if management is still serious about doing business the same way or even in a better way, and not try to screw shareholders and the company.

      • Buying and holding a stock for years will probably underperform more active trading strategies as market moves have become much more volatile over the last decade. To me buy and hold means buying a breakout from a flat base and selling when a stock is overextended from its 20 day ma.

        As to the condtions that will propell mags back to its old highs, I think they will eventually come back. The first pre-condition will be and increase in terorrist activity (no I don't wish that. I am just saying it will draw attention back to security play). It is just a matter of time before another terrorist event draws the world attention. The second, as it relates to mags is that revenues must accelerate much faster than the pace of the last qtr. Without stronger sales, mags will not join the next party, no matter what the geo-political landscape looks like.

    • I've been trading for a long time and have compiled about 350% total return since '98. That was until MAGS...and now I am down 50K on it. I usually follow great rules and know how to read charts. This one was just stupidity.

      Always cut your losses fast so you have chips for the following day. If you are winning on a stock let run a bit but don't get greedy. I hope all the people that lost will get some of their cash back.

      • 2 Replies to astockloker
      • I really am glad to have read this post of yours. You remind me of me (albiet with more than I have right now) but anyway, I too have always been a farily safe investor, taking calculated risks. I generally watch a stock for awhie before buying it.
        I recieved a bunch of cash recently from a source I did not know about and put it into ameritrade. I have watched many stocks and have noticed that 8/10 times any stock falls more than 10% in one day, it usually recovers 1/4 - 1/2 that if not more the next day.
        Also, it is almost always never when a stock falls as many days as this one did.
        I took the whole amount I had and saw a 16.8% drop last thrudadsay to 28.26, I was also looking at F, VC, ASTM, EMRG, msft, CPWR and I was thinking about buying any of them. But the 16% drop looked intriguing, especially after looking at the companies financials/balance sheet as I know it had a run that was a little fast, but nonetheless a 15% profit margin, no dect, millions of dollars and what looked like a solid business as well as the fact the product was right for terrorism which is not going away anytime soon, I was just looking for a modest quick gain of just 500-1000 dollars in the next few days, less then 10% gain. The next day it did go up 1.2% so I figured, just wait. Then it dropped like a rock every day since then, no news, nothing. I saw there was results coming Wed the 28th, so I decided to hold and wait to see what happens with that, I figured since every other stock that was reporting daily was way above expected, I figured this had a good chance too. The report was not terrible, but not good and it dropped down to 16. Still, I keep thinking that it has to turn around at some point, stocks never keep going the same direction for way too long and the financials are good. I am not sure what to do now. I am still holding out alittle longer but I lost bacically everything I started with if I was to sell it, but the only problem is I have a margin call even with $1500 I just put in yesterday :(
        What really gets me is if it had not dropped like thaht that one day I would not have even looked at it, Every other stock I mentioned went up over 20% within 3 days after that before yesterfday before everything started going down again.
        But yes, I am typically a careful person and don't take huge risks.
        Do you have any other interesting advice to give?
        MR

      • I guess my biggest weakness is greed and unwillingness to sell. I have broken my own rules of not more than 5-10% in each stock and suffer the consequences big time, on paper anyways. About MAGS I am hopeful if insiders do not screw us or the company.

    • I use a program called hotscans to give me ability to scan market movers in real time. It is a very useful trading tool. www marketgauge com

 
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