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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: Raj Ramaswamy who wrote (13944)4/2/1998 4:22:00 PM
From: Karl Drobnic  Read Replies (1) of 31646
 
Raju: I don't think I can "kill" a TAVA rally. My "footprint" comment was meant to be reassuring to those who are nervous about these very substantial profits we're holding. The greater a profit gets, the greater the temptation becomes to jump out on a decline. One way to cope psychologically is to average up after the big runs occur. Let the run "run", measure the distance, and buy a bit more on the 40% pullback. The breakeven point on the entire position will rise, but will still be substantially below the new entry price. This is a conservative way to ride a winner. It also becomes an easy exit strategy in the future. Sell the most expensive block first, etc. until you're left with the original block (the cheapest, taxed highest) to give to the grandkids (someday).
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