A Simple List of General Do's & Dont's of Trading: Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading:

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Arthur Tang who wrote (722)	9/26/2000 8:18:45 AM
From: Arthur Tang	Read Replies (1) of 769

When you buy a basket of stocks, you have started a hedge fund? Absolutely true. So do you balance the portfolio; so that the gains might balance out the losses(a classical hedge). Then sell the losses(tax loss benefit) or the gains to catapult into other stocks when the economy gets better. You will only have to pay income taxes, which elevates your cost. So, hedging has to have a chance for all the stocks to move up when the economy is good. Perhaps even average the cost down with some stocks split. Or, you can anchor a big stock with many small growth stocks for aggressive investment. And you don't buy or sell too often. My father did it that way, he did not buy any stock that the management is weak. On the other hand, I buy only those stocks that the management is weak and try to turn them around. The results are very slow. And the management sometimes go back to their old ways. So, to do the hedging, I have to program the progress of each stock and lead the consulting efforts to tune their results. Each year perhaps one stock will reach its zenith, the rest can flounder. It is another way to hedge.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next