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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (696)1/24/1998 9:23:00 AM
From: Arthur Tang  Read Replies (1) of 1471
 
If you are a beginner, use limit order only to test how weak is the market. If you can buy it cheap, it will get cheaper soon. A strong market for your stock, you have to buy at market order. Second order will cost you even more. Average up will create wealth for you, until you want to sell the whole investment. Always use a buying program, as well as a selling program(a graduate accumulation and/or distribution program).

Lately, wealthy people who are inexperienced try to buy a few million shares in one big swoop. The market gets distroyed, because of the large volume of borrowed stock(short interests). Return of the borrowed stocks is difficult, now a days. In an improving economy, nobody wins; stock price stays below the cost of borrowed stock. In a declining economy, the market maker, who shorts, wins; the company might go bankrupt.
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