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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 686.19

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Feb 4 4:00 PM EST

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To: Trey McAtee who wrote (25202)	9/8/1999 4:37:00 PM
From: Matthew L. Jones	Read Replies (1) of 99985

Trey, This is only my opinion: THERE IS NO SUCH THING AS A PAPER LOSS! I know all about prolonging the pain, and that unless you are in a total dog stock, it will eventually come back. However, if you tie up trading capital riding out a loser, (I'm speaking from experience) you not only eventually wind up taking a "realized" loss (often times), but you also have what is called an opportunity cost or the loss of potential gain placing that capital at work in a different trade while attempting to ride out the dog! Why do you think nobody wants to buy $RUT stocks now? Sure there is "value" there, but the opportunity costs associated with not having your money in the large cap techs is much worse than the additional risk in buying high P/E stocks.

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