HSL / Newsletter / Track Record
Do You Need to Take Large Risks
to Surf the Internet Wave? Not if You…
In our October 11, 1999 issue, we recommended buying 12 Technologies (ITWO) between 45 & 47. ITWO dipped to 46.25 on October 21 and took off! If you bought at the "high" price of 47, the most adverse price movement was only 75 cents!
In our April 11, 1999 issue we recommended buying US Cellular (USM) between 45 & 46. It dipped as low as 45.63 on April 12 and again touched 46 five times by April 23 before making the connection to higher prices.
That means that even if you bought at 46 (the high of the buy zone), the most adverse price movement you had to "suffer" through was 37 ˝ cents/share!
More importantly, the original stop-loss was at 43, so your original risk was only $3/share!
While you can't always keep your orginal risk so small, by combining chart analysis with money and risk management, you can do more than buy & hope.