Jimmyo: Did you take math in school, if so, they you may understand this.
Last year I bought more than a few thousand shares of Nextel at prices ranges of 28-30. Some of these purchases were on margin. I did this because I thought of Nextel as a long term investment, I wasn't a day trader. So, now lets examine two of my 1997 choices, using hindsight, of course.
1. Keep the stock. Based upon todays price, where would I be? Easy to answer, in debt and at a big loss. Especially after incurring severe interest charges to my margin account, 6 months worth.
2. Sell the stock at the end of 1997, take the loss, save the interest, move on.
Now you are a pretty smart guy, what should I have done? Right answer Jimmy, sell and move on. That's just what I did, incurred big losses, but saved the interest. Jimmyo, thats how I became a short term trader. It's easy to be in a cement fox hole and act brave. Some of you guys bought in at the 15 range, easy to be a Smart talker at that range, try talking big when your buy was at 35, especially now with the stock pushing down on the low 28.
It's not fun to be heavily invested and not know if, and when, a recovery will be possible. The interest factor also comes into play, doesn't it?
Al G., I'm not leaving, just not investing till the bottom is determined. |
