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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: DlphcOracl who wrote (10345)	8/3/1999 8:46:00 PM
From: Rande Is	Respond to of 57584

Can You See the Bottom? . . . .Dlphc, I usually start taking new positions in stages on the major dips. . . especially if the stock loses faster than others for whatever reason. But this is ONLY on issues that I am absolutely certain will come back. Remember that there are certain internet and other high-techs that were so overinflated that they may NEVER see such dizzying heights again. . . .and the level they are at today may seem extraordinary, when compared to where they are in several months. I saw stocks drop 75-85 percent or more last year this time. Remember a stock that drops 75 percent must rise 300 percent to return to where it was before it dropped. . . likewise an 85 percent drop requires a 400 percent increase. So you can see that the likelyhood of each stock to return from where it fell is slim. So on the one hand we take the first of 3 or 4 positions when a great stock gets a haircut. . . but on the other hand we had better be darn sure that it will return. And that is why TRADING in this environment is suicidal. Best to just watch and wait for CLEAR signals of a bottom. . .and if we miss that bottom 5 or 10 percent. . .so what? Rande Is