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To: tekboy who wrote (8963)	10/27/1999 4:22:00 AM
From: Seeker of Truth	Respond to of 54805

What an interesting question! I'm keeping about 8% in cash even though I'm sure that's bad strategy from the point of view of making the most money. But it helps me sleep nights. When the market tanks I can look interestedly for bargains instead of adding up losses. Sleeping nights ----> wiser decisions + longer life + better performance in my real job, which isn't investing.

To: tekboy who wrote (8963)	10/27/1999 9:00:00 AM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

1% cash and I can't time the market.

To: tekboy who wrote (8963)	10/27/1999 9:09:00 AM
From: Percival 917	Respond to of 54805

Hi tekboy, I am one of those who is sitting on cash. It is getting smaller though. I do NOT feel I can time the market. That is not my intention; but I am one of those that as soon as commit my entire resources to a stock or stocks the market will surely go down. In fact I am so confident in that statement that over the past few years prior to my education here on the thread and reading the RFM, anyone could have made a fortune if you bought what I sold and sold what I bought. So old habits die hard. What I prefer to do now is buy half my position now and watch the news, the stocks performance, earnings, etc. and then take the rest of my position. I know that if the stock went up I miss out on the profits on my second half of the position but if it goes down....you know the rest. You may not agree with this approach but it works for me. If you ever see me post that I am taking a full position in any stock, including our beloved Q, GET OUT before you lose everything <ggggggg>. Squire J

To: tekboy who wrote (8963)	10/27/1999 9:51:00 AM
From: TigerPaw	Respond to of 54805

cash I try to keep cash ~5% although in some circumstances I go down to zero or less (margin). Market timing? I don't think you can call a top reliably but I've had good luck buying steep dips in good stocks for short term gain. It provides enough excitement that I am not so tempted to buy and sell my core positions. So I intentionally keep about 5% in short term trades. I try to buy when a fundamentally good company gets hit with some rumour or something (sometimes it's even true) and plunges to a greatly reduced level. Just how reduced depends on my mood and feel. (Examples TYCO a week ago, LU at $55, and my latest play MXTR at 5 1/2 which is an example that is not panning out as quickly as I hope). I usually start selling covered calls to (nearly) guarentee a profit and eventually force me to sell so I have cash again to play more. (I use an IRA account for these types of trades to postpone taxes and to keep me from mixing the money with my core holdings). I don't think it is any more profitable than holding a good stock, but if all I did was watch, even if the stocks are going up, it drives me crazy. TP

To: tekboy who wrote (8963)	10/27/1999 10:53:00 AM
From: Seeker of Truth	Read Replies (2) \| Respond to of 54805

Further response to your question about cash level. Ideally it should be a function of the attractiveness of what's around to buy, not ones forecast for the market. But the determination of good value is REALLY difficult. I once upon a time was lucky enough to see a major technology company selling for 7 times earnings. You can believe me, I made a big bundle from that. But if I wait for such a bargain to return I'll be on the sidelines with 100% cash for the rest of my life. I like the following maxim, which I adhere to but maybe some others have better ideas. There should be at least one or two stocks that you're refraining from buying purely because of the high price, even though you admire the company. If there are no such stocks then you're paying too much and should increase your cash level. ????

To: tekboy who wrote (8963)	10/27/1999 10:54:00 AM
From: Apollo	Read Replies (1) \| Respond to of 54805

Tekkie: I am LTBH; therefore, am generally cashless; invest usually within a few days to weeks of coming into new funds. Not patient enough, or smart enough, or Voltaire-enough to be able to predict new market entry points. I am impressed with some others elsewhere on SI, like BP, Gregory Mull., etc. who have stated in Aug and Sept how they were going to large cash positions largely in anticipation of Oct. difficulties. I am sure they have gotten some good deals this year. Have spent this year winnowing down, and now eliminating all mutual funds, and reinvesting in G & Ks. Stan