Stratasys, 3D Systems and the Next Technological Revolution

Mar. 11, 2011 8:54 AM ETStratasys Ltd. (SSYS), DDD13 Comments

All of us who trade stocks full time have heard the old adage: “cut your losses short and let your winners run”. It’s definitely a cliché, but this simple sentence encapsulates what a trader needs to internalize in order to survive in this business. A disciplined trader can be wrong 80% - 90% of the time and still make money. No trader is correct all the time so the idea is to exit a poor trade early with a small loss and to ride your winner(s) to big gains. One 5 or 10-bagger makes up for a lot of mistakes. The concept is simple to understand but very difficult to consistently execute.

So what defines a winner? It depends on who you ask. High frequency traders would have a different definition than a “buy and hold” investor. Personally, I am a position trader so I will maintain a trade as long as the stock, its industry, sector and the market all continue to behave themselves. My holding period may be less than one day to a year or more.

The Holy Grail for me is a situation where I identify a company on the cusp of a major economic revolution. This doesn’t happen very frequently so it’s a short list (at least since the 80’s): Microsoft (MSFT) / Intel (INTC) in the PC revolution; Cisco (CSCO) in the internet revolution; Apple (AAPL) in the consumer IT space and Google (GOOG) in internet search (I’ll add Facebook when it debuts if its ROC is >= 17%). With the exception of Google, all of these companies were small caps for a period of time after their IPOs. No one forecasted them to be as big as they would eventually become. All, though, delivered fantastic multi-year bull runs as they rode their respective

This article was written by

Healthcare sector investor and analyst for over 30 years. In a former life, held senior positions in the diagnostics, biotech and device industries. Married with three wonderful kids.

Recommended For You

Comments (13)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.