3SOF

I agree Terlisa, profit taking followed a small gap up, normal market behaviour. I'll continue holding GIGM for the long term.

I think this is going to be the first winner of 2006!!   
Thanks, David and keep up the good work!

Sold about 1/2 position at the close.  I was overweight in this one.  Glad I got a nice chunk of profit to start off the new year.

77% from my first buying 

nice start for trading year 2006

Quote from: la-onda on November 17, 2005, 09:43:08 AM
awesome results 
I have bought in  @ 2.13$ 

77% yet, nice start for 2006 

Quote from: la-onda on January 06, 2006, 04:55:05 PM

Quote from: la-onda on November 17, 2005, 09:43:08 AM
awesome results
I have bought in @ 2.13$

77% yet, nice start for 2006

This one has been nice to have also.
Must give Michael credit where credit is due...Applaud once again for the pick !
Nice volume today...
Volume: 3,067,123
Avg Vol (3m): 688,106
It is up some in the after hours also....
GIGAMEDIA LTD (NasdaqNM:GIGM) Delayed quote data 

After Hours (RT-ECN): 3.86  0.06 (1.58%)

Looks like it has taken over 1st place in The Stock Picking Contest.

nice yahoo board GIGM estimation   
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600640698&tid=gigm&sid=1600640698&mid=79696

GIGM closed above $3.70 on Friday, it would be nice if the stock could hold that level today and remain at a new 5 year high 

David,
Have you considered having a "Long Term Portfolio"?  You could have one portfolio for "traders" with short term Fast type picks that would continue the original spirit of 3SOF and maybe another for those of us looking for more longterm stocks.  There are several stocks that I thought of as long term picks (HANS, AAPL, AMD, etc.) that I sold when I had a nice profit only to see them explode upwards after.  You even have some stocks that you also considered long term picks, sold them and watched as they moved up (TRAD, BRVO, MESA, etc.).

You have done an excellent job with the portfolio earnings but we understand that you are learning the game just like us.  I look forward to your new ideas and hope you will give more thought to the long term stocks idea.

Glenn

Quote from: David Randolph on January 10, 2006, 04:27:48 PM
The more I study the stock market the more I get convinced the big money is made on long term plays. It is a plain mathematical thing, tell me what you think of this theory:

I believe this was one of the messages in your favorite book "Reminiscences of a Stock Operator".  bucket shop trading is just for small time players.

Also it will be great if 3SOF can start pyramiding on these types of long term plays.  I think that's the other message from Livermore.  Pyramiding and long term plays should go hand in hand.

Quote from: basonista on January 10, 2006, 04:42:37 PM
David,
Have you considered having a "Long Term Portfolio"?  You could have one portfolio for "traders" with short term Fast type picks that would continue the original spirit of 3SOF and maybe another for those of us looking for more longterm stocks.  There are several stocks that I thought of as long term picks (HANS, AAPL, AMD, etc.) that I sold when I had a nice profit only to see them explode upwards after.  You even have some stocks that you also considered long term picks, sold them and watched as they moved up (TRAD, BRVO, MESA, etc.).

You have done an excellent job with the portfolio earnings but we understand that you are learning the game just like us.  I look forward to your new ideas and hope you will give more thought to the long term stocks idea.

Glenn

A long term portfolio can be a good idea, but I wonder if a trade should be started without a long term horizon. That is a stock trade, or investment. I have to study this idea a bit more.

You see, I'm a very experienced futures trader, especially day trading futures. I'm not new to stocks (I started trading stocks in 1995) but the best part of my trading carrier was in the futures markets. You can call futures the bucket shops of our time, as netfishmademerich recalls Livermore ... the more I learn about stocks the more I feel there is to learn, and I'm absolutely thrilled with this experience.

You know what I'm finding too? Short and long term moves are more predictable than intermediate term moves. Possibly I can be a good day trader. I can also be a good long term investor. But looking for intermediate term moves has no «scientific» background. It looks more of a gamble.

Quote from: netfishmademerich on January 10, 2006, 04:43:53 PM

Quote from: David Randolph on January 10, 2006, 04:27:48 PM
The more I study the stock market the more I get convinced the big money is made on long term plays. It is a plain mathematical thing, tell me what you think of this theory:

I believe this was one of the messages in your favorite book "Reminiscences of a Stock Operator".  bucket shop trading is just for small time players.

Also it will be great if 3SOF can start pyramiding on these types of long term plays.  I think that's the other message from Livermore.  Pyramiding and long term plays should go hand in hand.

There's one thing you got learn about Livermore, the man was a genius, but he missed one part of the trading game, probably the most important of all: money management.

That is why he filled for bankruptcy 4 times before he commited suicide   

Pyramiding would break my simple money management rule of not putting more than a fixed percentage of capital in just one trade. Probably I will never be as rich as Livermore once was. But I won't file for bankrupcty either.

Anyway, I feel a bit like Livermore when he first came to New York, you know? This is a whole different game from making 20 points a day trading the DAX futures 

I trust on hard work and knowledge to master the stock market game. But I know I'm still learning like everybody else here, and probably I'll be learning forever.

I'm fortunate you joined me on this pursuit of stock market knowledge, and profits 

I agree long term positions are where the multi baggers are made and by long term I mean months to years. I am currently trying to have more longer term holds in my portfolio, but they require a more fundamental approach, they require a wider loss tolerance and probably a bigger position size as you want to focus in on a few real A+ candidates and know them inside out.
I know a trader here in Australia who trades only in 3 or 4 stocks (Australian, banks mainly) and only trades a handful of times in a month. He has made fantastic returns. Mark Crisp a UK trader with a subscription trading system advocates also only a handful of trades a year, with large position sizes to catch the big movers. He is also very succesful. Buffet as well (the long term king I guess) comes from the less is more approach, fewer trades, bigger positions. Obviously all the above practice good money management within their own systems (Livermore's weakness as David pointed out).
This is a good topic for the members board and not the GIGM board, there is a lot more I could say which I may do on a new thread there.

The man who bought GIGM yesterday by the close made 11% today. But I made 16% more from my buying point. This is why one should favor long term investing over short term, what seems so hard now can be peanuts if you hold a stock for a big rise.

Selcting the right ones to hold for the long term is the problem, since most picks will fail. Anyway, I'll continue studying to find the right conditions that favor a big long term rise.

GIGM seems to be that kind of stock. Still a small cap with extremely strong growth, high margins and a business model that, I have little doubts, will produce huge profits.

Now, there are risks, mainly regulation of the online gambling industry and competition. I have to keep monitoring these issues, but for now, nothing prevents GIGM to be a 20 to 30 bagger in 3 to 5 years time.

I'll continue holding GIGM for the long term.

All i can say is GIGM is a  great pick (applaud David)

Indeed a red hot pick.

Now I offer this chart more out of my own curiosity, as I always like to look back in history of a stock to see if there are any 'interesting' movements which could possibly give some indication of current moves. Hey this is really just out of interest and not really a guide to what could happen....but you know the stock market has a knack of repeating previous patterns / activities.

Anyway onto the chart, David showed some all history chart on GIGM. This focuses on the period of a 7 month window in 2000, weekly chart, GIGM was in full meltdown. Bear in mind GIGM now sits at $4.39.....

Now that would be nice.