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To: Condor who wrote ()	1/5/2000 8:33:00 PM
From: Carl Fritch	of 3

Here is a short list of do's and don'ts Don't listen to "hot tips" from friends. If they were so damn smart why aren't they rich from investing in the market and still working their job. Don't put too much of your money into any one stock no mater how good it looks. Its OK to let your "winners run" but don't try to load up on a "hot" stock because you think it can't miss. It will be "burn" you sooner or later. Fast rising stocks fall just as fast or faster and can leave you with massive, depressing loses before you know it. I've been there. Don't buy any "penny stock" unless you understand the company inside and out and have faith in both the company and whatever they are making. Don't buy penny stocks from "hot tips". See the very first post on this thread for more information on how penny stocks are manipulated. Never trade out of "fear" or "greed". This is the hardest of all because we all do it. Stay away from options until you understand how stocks work. Its much harder to make money with options because the potential for loss is so much greater. People like Wade Cook want you to believe its an easy "money machine" but unless you can successfully trade stocks you will not have a chance trading options. If/when you decide to trade options you should start with "safer" strategy like "covered calls" until you learn how options work and can really appreciate the risks involved. Find a good stock picking system and use it: I highly recommend fool.com as a starting point. There is more information there about how to invest than anywhere else I know on the web. I'm successfully using a modified version of one of their mechanical investing stock screens: geocities.com with almost unbelievable results. (Note: past performance doesn't guarantee future returns). Understand the Technical Analysis is more an "art" or religion than a science. There are people who claim it works and others who put no faith in it at all. I personally think it is like the weatherman forecasting the future. It helps but its not perfect and sometimes fails completely. The farther out into the future you go the less reliable it becomes. I think the best way to use technical analysis is to first use fundamental analysis to pick your stocks and then use technical analysis to "time" your entry point. Even if you don't believe in Technical Analysis you should learn to "read" a stock's long term trend from charts. Stocks tend to follow a trend its established. Don't buy a stock just because its gone down a lot and appears to be a bargain. Especially, if its broken its "support" on a long term trend. This isn't K-mart blue light special here, there is usually a reason for a stock price to drop and its usually not good. Its also a bad idea to buy more stock as the price is dropping because you don't know how low it will go or how long it will take to recover. Believe me, it can take years for a stock to get back to the original price you bought the stock and none of us are that patient. This is all I can think of at this time. Good Luck Trading Carl Fritch

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