Hi Meathead; Regarding: You are positive dell is
overvalued but wouldn't bet on it??? And you call
yourself a Day-Trader!?!?
This statement essentially proves that you don't know
jack about day trading.
Sure, I expect DELL to be a $20 stock a year from now.
That means that on the average 2-seconds of trading,
it will drop by $0.00002. This is not enough to cover
commissions, so I no need to put on the trade. If you
don't have the fast reflexes that day trading requires,
and tend to hold your stocks long-term, say an hour,
then you can expect a drop of $0.03, which starts to
be a reasonable amount, but is still barely enough to
cover commissions.
So sure, I expect DELL to go a lot lower, but it just
doesn't matter to a daytrader. It just doesn't matter.
As far as explanations for DELL's overvaluation, it is
largely due to the lack of understanding of technology
and business among investors recently.
Here's a question for you: Clearly, if DELL is fairly valued
today, then it was horribly undervalued a year ago. Why?
-- Carl |
