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Non-Tech : C-A-N-S-L-I-M: A Simple, Easy to Use Stock Picking System -- Ignore unavailable to you. Want to Upgrade?

To: johnsto1 who wrote (2)	7/11/1999 3:52:00 PM
From: John T.	Respond to of 42

Speculation vs. Investment In his book, "The Intelligent Investor", Benjamin Graham points out the difference between "investment" and "speculation." "An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative." Neither EDGR nor ISLD are CANSLIM investments. They fail the first test in that they do not have positive current earnings. Both stocks are recent Internet Initial Public Offerings. A person buying EDGR or ISLD is speculating; not investing. For those who are not familiar with EDGR and ISLD, here are links to their price charts: Edgar Online Inc (Nasdaq:EDGR) clearstation.com Digital Island Inc (Nasdaq:ISLD) clearstation.com Since you asked for help, I assume that you are suffering a loss on both EDGR and ISLD. Perhaps you bought the stocks at or near the top of their price spikes. There are four cardinal principles of trading. They are: 1. Trade with the Trend. 2. Cut Your Losses Short. 3. Let Your Profits Run. 4. Manage your Risk. The only reasonable thing to do is to CUT YOUR LOSSES SHORT. Decide how much money you are willing to lose on EDGR and ISLD and stick to it. Set a stop loss, mental or actual, and stick with it. You may have already reached your loss threshold. If so, sell immediately. In my experience, I have found that a spike in a stock's price that is not supported by fundamental change is usually short lived. Generally, after spiking the stock's price will return to its 13 day moving average. I also recommend "Reminiscences of a Stock Operator" by Edwin Lefevre. Written in 1923, its a classic book about stock market speculation. amazon.com