Sunday, January 13, 2008

Monster Stocks

I started having interest in the market in 1999 and I put some money in QCOM and IDCC in late September. I remember how I made an 800% gain on my $4000 in just a few months. I had over $35000 in January 2000. Well to make the long story short, I lost all my gains and around $5000 more by the end of 2000.

I am currently reading the book Monster Stocks, (a recommendation by Stockbee) and that got me to do some thinking. I studied some past monster stocks and here are my observations.

  • Monster stocks can gain an average of 500%-1000% in less than 3 years. Most of them gain that much in 1 year. There are some exceptions. QCOM gained 2000% in a year.
  • After they make their parabolic move they crash pretty hard.
YHOO and QCOM the tech bubble


HOV, the housing bubble



Are these bubble stocks unfolding before our eyes?

RL, a retailer



DRYS, Dryshippers



GOOG, RIMM, AAPL, LFC, CMI




Look over the charts and see what you guys think. Will our current leaders suffer the same fate? Google was up 750% at the top, so compared to other monsters there might me some more juice left. Maybe GOOG can go to $1000(1000%) or $2000(2000%).

5 comments:

Anonymous said...

stop giving away the secrets to the momentum big money.

OBAT said...

Don't worry, I probably only have 30 regular readers.

Anonymous said...

any more revelations the underground momomentum mafia will pay u a visit.
like the blog- esp the more detailed posts.

Anonymous said...

those monster stocks also made good shorts later on...........

Quentin

BullPreacher said...

Obatrader,

THANKS for reminding us, What goes up- must come down.

About Me

I have been trading for 5 years. It took close to a year before I became profitable. I find that I am improving gradually each year. My method of choice is scalping. My edge lies in tape reading NYSE stocks and staying on the side of the specialist. That is the method I learned when I started. As I build up my capital I will try new styles and trade new markets. In late 2006 my trading hit a rough patch after the introduction of the NYSE Hybrid system. For most of 2007, I have been on a search for new strategies that would help me adapt to the market.