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Strategies & Market Trends : Charts With An Attitude; Trading In & Out

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To: Linda Kaplan who wrote (3676)11/13/1997 11:55:00 AM
From: James Strauss  Read Replies (3) of 4701
 
When To Sell...

>>>If my stocks don't bounce into profit territory, do you think I should increase cash taking losses? Ordinarily I would just try to ride it out.<<<
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Linda:

You'll have to decide for yourself what's appropriate...

I have increased my cash position... I've taken some small losses on some stocks... I'm weighing that against the weight of major market effects on most stocks... The stocks that disappointed are gone or have one foot out the door, no matter what future potential they may have... Stocks like RECY which have shown good RS are the one's to keep and add to... The key is good RS and good and or improving fundamentals...

Some stocks that you may sell begrudgingly may be bigger bargains in the weeks and months to come... If the market should surprise and start moving up, you can always buy back in at slightly higher prices... A small price to pay for preservation of capital...

Jim
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