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Strategies & Market Trends : Your Worst Trading Enemy.. You

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To: RobQ who wrote (211)2/7/2001 4:57:46 AM
From: shawnwolff   of 223
 
I agree RobQ

I think its unwise for "trader types" to be holding into big earnings. I recommended "trader types" to wait and possibly enter sympathy plays in the same sectors, long if good, short if bad. I am both a "trader type" and an "investor type", so I had to make a decision about longer term stuff too. That's a more complicated decision. All these questions went through my head.. Will the market shrug off bad news as it has recently? Was a disappointment already factored into CSCO's current price? How do I feel about the risk? How exposed am I? How strongly do I feel that the market has found a bottom? How do I feel about a recovery in the latter part of the year? I decided to take some gains, reduce some exposure, and I can always re-enter after the dust has settled. That's just me though. I think we all have risk-thresholds, and we have to find what those are. I think part of the psychology of trading is learning to make objective decisions, right or wrong. There is no room for hindsight.

- Shawn
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