Thoughts on Rande Is, September events, and prior comments:
1. Rande Is did indeed misread September. As I read it, he
called for a 4-day shake at the beginning of the month by
the MM's to drive prices lower, followed by a rally on
high volume when the institutional investors returned
from September.
2. I have had large losses in September by entering the
market too early. I thought the NASDAQ trading range
would be 3500-4300, bought back aggressively at 3400-3500
and had my lunch handed to me.
3. Rande Is is in no way responsible for my losses and no
one on the thread should harbor this sentiment. We are
responsible for our own investment and trading decisions
and it is our responsibility to filter all information we
gather and use accordingly.
4. All of the investors on this thread are susceptible to
large losses because of our investing style. We are, for
the most part, buying technology stocks which are: very
richly priced; small-to-mid-cap; trading aggressively;
looking for and buying small, fledgling companies which
have not established their positions in the market.
Sorry to say it, but this is a normal part of investing in the technology sector. For those who have suffered steep losses or who are spooked by the extreme volatility, he/she should consider: diversifying one's portfolio; trading less often; avoiding those stocks with the steepest valuations (since they are prone to the most rapid and steepest selloffs).
If one looks around, many non-tech stocks have fared as poorly as the tech sector. I do not see fortunes being made buying: airline stocks; retailers; cyclicals; financials. I remain convinced that over the next 5 years, investing heavily in technology stocks will provide the highest returns if one uses a bit of common sense and prudence. Unfortunately, watching one's portfolio periodically lose 30-50% of its value will be the norm for those holding a portfolio of tech stocks. Only advice I can give is that it may be reasonable to greatly reduce or eliminate one's tech stock holdings from mid-March to mid-October.
Caveat emptor. |
