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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (24882)	9/3/1999 10:31:00 PM
From: James F. Hopkins	Respond to of 99985

Dave; If I pick a basket of 10 stocks I do right good, but to play that I have to put more money in stocks than I want to, and at my age I want to hang onto the bonds I have so in short with out selling bonds and going 100% stocks I don't have the chips to play a good 10 stock portfolio of the blue chips. I did it with some cheaper ones and did OK but the cost of trading and the spreads and all eat up to much. ------------------------- But now onto the "idea" of why so often it's hard to make it picking just singles or making side bets. (it's not only the lack of diversity ) I believe that when we look say at the 10 stocks we would take if we were to buy 10, and as a group they are likely good BUT then narrow that down to 1 or 2, what do we do ? We try to pick out of those 10 the one with the most profit potential. a ha..what does that mean, well if it has the most profit potential it likely also has the most risk. <G> -------------------------- Another thing about making the side bet is it takes time to go through the process of elimination, and likely even more time than it would take to bet the spread. All this takes your focus off the indexes enough that you can miss a market move. More than once while I was figuring out which 1 would be my best bet out of several by the time I got my eye back on the market I find the train has just pulled out of the station with me not on it. Jim