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Pastimes : Home on the range where the buffalo roam

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To: Boplicity who wrote (10498)2/28/2003 1:55:58 PM
From: Sig  Read Replies (3) of 13815
 
Some investment rules to consider:
Rules will always be broken, but our chances of success could be greatly enhanced by improving the odds.
1. All stocks will crash sooner or later
Action: Be fully invested only part of the time.Stay out of the market in Sept and Oct. If LTBH keep adequate reserves.
2. Most stocks follow a channel, resulting from the huge increase in options plays. Therefore resist the temptation to buy mo-mo stocks unless you have unique information on the company
Dell has a good example of a channel
3. Following the news is like following a breadcrum trail to a huge trap. Companies and analysts both participate in creating these tempting trails. They can lead either down or up.
HPQ is a good example of what happens to an often- touted stock
4. Rotation or churning is another practice now destroying the stability of the markets and purposely making it very difficult to determine if a stock is a genuine LTBH candidate. With people very confused as to just what to do
they become inclined to trust the brokers or experts in making investments- which is a very poor idea.
Merely glance at the performance of the many Janus funds to see what happens
These generalizations helped me get out of the market in September, they indicated I should buy Dell at 23 and 24 they indicated I should buy Tsco at around $30, they told me to sell Beas at @14 ( but I didn't) and they are telling me to buy Beas at @$9 which I am doing.
Altogether a big improvement.
Sig
Any comments welcome.
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