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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank

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To: kendall harmon who wrote (105345)7/1/2000 11:18:46 AM
From: Jenna  Read Replies (1) of 120523
 
Most daytrading firms sprouted in the bull market of the last 5 years. It was easy to make money without proper experience and the 'feeling' from losing in a bearish market. Young novices prospered and then died in the ensuing bearish market of on three different occasions

a) The Asian Crisis

b) The Downfall of the Internet Sector

c) The Downfall of the Technology Sector.

I learned my lesson in a) never experienced b) or c) .. Only the strong survived and those that were 'humble' enough to know losses in the past and clever enough to use a down market to make money and not lose money 'investing'.. Those that followed the new trend were winners (getting into energy stocks to tide you over the downswing) and not those that 'stuck it out' with antiquated investing strategies of holding through thick and thin.

Even if some money did in fact come back to a number of investors, it was not the triple digit gains than traders enjoyed. When traders put their hubris on hold, admit to mistakes and break some bad investing and trading habits they will succeed. You have to be a chameleon in these markets to profit from them. Losses do come but they should be quick sells, and winners will run.

If a stock is to be more than a ‘one hour or one day wonder’ we need the backbone of fundamental strength. Fundamentally strong stocks have more chance of becoming swing trades or even short term/intermediate ter holds. For the most part profits are greater and the risk inherent in holding a trade for the ‘larger haul’ lessens.
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