3SOF

Quote from: Thunderbunny on June 18, 2005, 10:44:37 PM
David,

While the veteran traders will likely laugh at this question, I find myself often wondering what is the right number of shares to purchase in a trade. The obvious answer is that it depends on how much you want to or can risk. Sometimes even a dramatic move will yield negligible returns if you haven't purchased enough shares. Do you have a rule of thumb for how many shares to buy with each trade?

I apologize if you've discussed this in earlier posts, as I am relatively new to 3StocksOnFire (but am already thoroughly impressed)!

Hi Thunderbunny ! welcome to our board

You must think in total position value instead of number of shares, the number of shares is irrelevant for your trading strategy, because each stock has a different price.

Imagine your total equity is for example $100,000, and you want to take a long position on a stock @ $10, you must think how much money you want to put on that position, and then you calculate the number of shares you want to buy.
You should also have some kind of rule, like we do on 3SF. Here we don't exceed 6,66% of total equity in one position, which means that in this case we would buy $6,660 of that $10 stock, by other words we would buy 660 shares of it.

best regards,

Fred,

Thank-you for your answer - makes good sense! Definitely appreciate it! I've already learned much from the membership of 3SF since discovering the site several days ago!

Definitely a great site and excellent interaction here.
  I've changed my concept of trading more in 1 month here than through several newsletters I subscribed to.  From their recommendations I have a finely tuned engine running on all cylinders. One day a position is up and the next down. I am down 20% in my portfolio from Jan 2005 and the buy and hold concept.  Long term there are winners true but long term they ebb and flow and if I had moved in and out of my positions I would be much better off.  Now I have decided to take profits when they come and not wait for the long term.
  One thing I learned a long time ago is it the percentage not dollar value of the gain. So I also see the greatest potential in the OTC board at this time.

Thanks so much David,
God Bless

Does anyone on this board use TC2000 for your charting software?  If you are well versed enough in it's use to post this material in the form of a scan it would be greatly appreciated. For all the claims of TC2000's simplicity, I really have a hard time with their scans, watch lists, PCF construction.  Thanks in advance for your assitance.  I usually can identify decent buy/sell candidates when I see them, but I need help with an initial sort that narrows down the whole universe of stocks to a more managable # to review.  This seems to be as good as any initial sort to get down to a smaller group of stocks to review.

 

What a gas!!!!!!!!!!!!!!

Dave and Fred,

I recently discovered and am now also a new member to 3SF, but I want to tell you that:
- your website absolutely! rocks...great job!  It's so easy and straightforward!
- the saying goes "a day with a master is worth a year of self-study", and I greatly appreciate your direct, honest, candid, no-bs approach/style and willingness to help pull the rest of us "up" in our investing abilities and understanding. 
- hats off to the other members here, a community is only as good as its members, and I sense this is a great community that's gathered here.

Thank you!  Best regards.

Quote from: eagle2232 on July 15, 2005, 04:29:35 PM
Dave and Fred,

I recently discovered and am now also a new member to 3SF, but I want to tell you that:
- your website absolutely! rocks...great job!  It's so easy and straightforward!
- the saying goes "a day with a master is worth a year of self-study", and I greatly appreciate your direct, honest, candid, no-bs approach/style and willingness to help pull the rest of us "up" in our investing abilities and understanding. 
- hats off to the other members here, a community is only as good as its members, and I sense this is a great community that's gathered here.

Thank you!  Best regards.

Thanks Eagle

And welcome to our website !

Hey Dave ...enjoy your thread, on a couple of times I noted people asking about selling rules, I am sure you have used the following rule....and perhaps its time to restate it to your followers..........

when I buy stock, I usually try and buy round lots....(most times its cheaper on the commission rate) and also, when the stock reaches a solid level and seems to be stalling and all the signs are there that indicates run is falling off.....I usually take 20 - 25 % off the board....this gives me a nice edge on the plus side if in fact the stock begins a severe correction, and if stock continues on its upward trend I am still in and am now holding cash assets for other buys, or even additional purchases of the stock at hand......Also< when the stock reaches a double I usually sell 1/2 and recoop my initial investment, and re-invest into another one(that of course you have recommended).  Thus, I have nothing to lose....so to speak if the original stock loses some of its zest, or goes into a long base building event.  I know somewhere in the past you have advised this method before, as I recall, however you are picking up newbee's daily, and they simply are not aware of this method......Thanks for all the advice.....most people are reluctant to share all this great stuff you are putting out!

GeorgiaBill  "gabillh"

thanks for a great site! finally found something worthwhile on the net as far as traders info goes. i have been stuck with the yahoo message boards which are absolutely appalling the way people treat eachother there. i am new to trading and have been studying the safety in the market swing trading method developed by David bowden in Australia. it based on the work of gann, your site has been a great help to my understanding already . thanks again,
maxi

Hi david and frederick,

I just read the few questions and tips about numbers of shares to hold and when to go out when the stock goes sud!
I suggest than you open a new topic with a title like "risk management" to debate on those issues .
My best regards
Phabrux

I was wondering when you would start charging.

David,

     I've been lurking here for the past month or so, but have to say you are really a good stock picker, stock educator, and communicate very well your decisions/strategies.  I hold you in highest regards, and would like everyone to know that on 09/14/2005 you posted a buy on CTIB to buy at the open and then pulled that post about 10 minutes later.  Well, I saw it and needless to say profited about 50% in one day.  You will be getting a donation in the near future.  Thanks a bunch,

Ellen

Moved this thread to this board.