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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: E. Graphs who wrote (11057)	6/11/1999 7:36:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 29970

Don't you mean support at 90? Oops. But support is resistance isnt it? I tend to use the word "resistance" for either direction because I am speaking of regions where prices move less easily. Why are you looking for panic? Prices really do usually reverse on a panic. Most people say it is because the sellers have all finished. Ah says that it is when the buyers finally give up. I say it is psychological: People have a built in moving average in their emotions. As long as the stock stays on the moving average they dont consider it "cheap" enough to enter in force. When the price plunges in a panic finally the emotional state of "cheap" (=much lower than the emotional moving average) kicks in. Suddenly people see prices are rising rather than falling and other people jump in too. They have more than enough business to deal with! They have a waiting list of customers!! Nothing has changed I couldnt agree with you more. So what does this teach us? That price movements are more emotional than fundamental. The one thing that has changed is that people are now afraid. Fortunately when the time is ripe emotions can change very quickly. Are you saying that your possibility is better than my possibility? I am expressing my opinion, so are you. Thats the point isnt it? We probably will both be wrong, but we take the time to express our opinion because it helps us focus and act. You ought to learn how to read charts better. It will improve your luck. The concept of "luck" or something like it is destructive to either a trader or an investor. I refuse to act decisivly on what I see because I "hope" I am wrong. Eric

To: E. Graphs who wrote (11057)	6/11/1999 11:59:00 PM
From: ahhaha	Read Replies (5) \| Respond to of 29970

It is true that stocks don't require a panic bottom and it is true that panic bottoms are great entries. The problem is that by the time you observe them, they are already gone. Such price extremes are transient states and my attitude has been that that is the arena of the floor. I don't need to beat the world into submission to do well in stocks and what I miss I have learned to recognize as preservation of opportunity. Using ATHM with a close of 86 as an example, if you booked limit 80 GTC for x, then you might pick up stock at a steal. It might jump down there, pick you up, and take off. Within several weeks it gets to 105. You can't stand the temptation because you bought so well, you stole, so you feel like you have to blow it out in order to secure the figurative ill-gotten gain. You can't stand to have the market take it back. If you had bought at 93, then you would be indifferent because you joined the herd and bought fat because you waited to make sure it was safe. On the other hand if doesn't stop falling through 80, how smart is the attempt at a steal vs the naive "safe" entry? Because this is all effectively undecidable, the right action is to hold your nose and buy, and just trust that you have a good company. Since you waited prudently and preserved your capital for this fluctuation to create this opportunity, you have already done well.