A little help BEFORE the opening bell

[aquaswim47]

These are the stocks I am considering to buy:

JCP - A 19.6% upside to a 7% downside. Yuck! I am very unpleased that I missed this best of breed play.

GOOG (want to have a limit order of around $510 to $525). I believe that GOOG could reach $800 per share or could drop to as low as $475 per share (long-shot of $450 per share). I am glad the stock just got knocked down. I guess predicting the stock will have a $250 billion value by year's end is ludicrous and I'm glad I went for ADBE instead.

TEX - Terex Corp (a competitor of CAT & DE). I really like the very low PEG ratio of this company.

UTX

COP/OXY/XOM/XTO

[Airelon]

Well, take these thoughts with a grain of sand, because I walked away from Stock Trading this week, until the frist of November. It's a seasonally weak period from here until that time, and I always enjoy myself more, if I just take a break from the markets at that time. So take the following with that bit of data in mind . . . .

I like JCP's fundamentals a lot, and that was a stock I was looking at myself. From a technical standpoint, it could see a bit of selling with the larger trend from where it's at now.

GOOG. Never have I hated a stock so much, that I've done so well with. I think it has to do with being such an enigma, and there is so little that we can compare it with, to make a decision from. It's such a wild unknown. The earning outlook, while favorable forward vs. current p/e? Still - it's freaking . . . what a p/e of . 47. 91!!? Someone were to tell me that I was going to own such a stock 6 years ago, I would have called them a liar. But here I am, with GOOG. Honestly, at this point, I have no idea what this stock is going to do. I really like their business strategy because coming from an I.T. background, I think that GOOG knows how the business of the Net is going to work, and realizes that right now? It's in it's sheer infancy. But as to the stock price? I'm clueless. It's truly the oddity in my entire porfolio.

TEX. While the fundamentals look good here, has it already made it's run? I'm a big guy for going with the trend, but looking at the 6 month? Not sure. Same for UTX, COP, XOM, etc.

Then again, I'm not sure what you're planning. Just a scalp? I look at the fundie's and the technicals, but I'm a big guy for owning stuff long term, following the trend, and buying when there are established 30% retracement dips. So that's probably why I look at companies such as TEX and UTX and pass them up. I would have been looking to buy TEX and UTX when the chart was looking as it was taking those dips in the beginning of June, and end of June. Or even better yet, in March and April.

Probably not helping here am I ?

[aquaswim47]

Do you think a limit order of $73.75 could be a good price to buy JCP or should I hold onto TSM and JNJ? I've got some free trades but because of the move, I am kind of distressed. I wanted to buy it on Wednesday but I didn't have the free trades yet. I am wondering if a higher or lower limit order should be used.

Thanks so much for your help. I got crushed in the earlier part of the year with JNJ's stent problem (probably 5% lower as a result).

[Airelon]

As far as my help? Mate? I am more than happy to help. God, I've been at this for 12 years now. ANYTHING I can pass on as far as what I've learned, or means of helping out? I'm more than happy to do it. So rare you meet people who are willing to learn for themselves, and interested in the educating themselves as to the markets.

Now, as to your question. Where to place the limit order? Well, everyone approaches their trades differently. Not sure of your money management strategy, and to be honest? EVERYTHING depends on that (Money management principles will make or break a trader - nothing else I can tell you, will assist you more)

For example, look at TSM. Wierd you bring that up, as I just bought some at 11.04 earlier this year. But I bet you a thousand dollars we view TSM differently. But my stock investing strategy is that of a dividend investor. I use a modified version of "Dogs of the Dow" + "Dollar Based Investing" / Seasonal Tendencies + Fundamental Analysis. My money management is such, that I don't mind if I don't get all the dips. Heck, I bought GMR, and if you look at the one post of mine, I continued to buy it, though it was falling. If TSM dropped to 9.00 I wouldn't mind. I have my dividend revenue, and I'd just look at the next dip + Seasonal time to buy more of it. But other traders might view a dip of 3 dollars as a complete disaster in TSM. It just depends on the money management strategy. I see a chart like TEX, and pass it up. But who knows. Someone else may have developed a strategy that allows them to profit from it.

Everything revolves around Money Management Principles. Everything.

So where you should place that stop? Honestly? That all depends on the drawdown you can withstand, and your overall money management strategy. As well, not sure if you see this as an investment? Or a trade. Because I see those as two totally different things.

[aquaswim47]

Ironically, I want to have the same strategy but than I find something that's just "too cheap" to pass up. Thanks for the tidbit. I guess you have to continue to do research and stick with what you own unless that research is negative.