Bernard,
Among the top-tier high tech stocks, SUNW is a much better "trading vehicle" than INTC. Sun's trading range (please refer to the chart) is basically defined by 2 contradictory forces: merits of the high-end, high-margin UNIX based workstations, JAVA,etc, as well as the fear that MSFT would one day eat their lunch with its NT. I used to have a core position of SUNW, but resorted to trading around this stock in the last 3 months as a more profitable strategy/approach. IMO, even CSCO is a better trading stock.
In general, you simply would not want to play around too much with a stock that has a monopoly of a market. Bow-tied Rogers on CNBC used to (still does) help people lose their shirts by recommending shorting INTC. Puts are not much better, except the loss may be more finite. I think trading is a great strategy to make $$$ in the stock market, but you have to pick your targets right. There is nothing worse than a trader listening to an investor's advice or vice versa. The situation could be downright dangerous as many people on this thread have already alluded to.
Ibexx
PS: The reason I picked the above 2 examples is that they are also stocks for long time hold, if your stomach can tolerate a higher level of volatility for |
