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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Hank Stamper who wrote (1799)	11/6/1999 12:48:00 AM
From: Guy Gordon	Read Replies (2) \| Respond to of 24042

RE: 4. The price has risen so much that your portfolio is out of balance--i.e., over-weighted by a particular issue and so you sell to re-balance. I used to think so, but don't anymore. A year ago MSFT had grown to maybe 20% of my portfolio. So I sold half of it. It's now more than doubled, and I missed out on a lot of that. So, just because JDSU is now 20% of my portfolio after only six months, I'm not selling. Oh, and that other part was well-said: Euphoria and Panic are two sides of the same coin. We all know the market is ruled by greed and fear. These emotions cause you to sell when you should buy and vice versa. Like you said, if you buy now you must be willing to hold through a big drop. A 20% drop would only bring JDSU back to its 50-day moving average. If you are ruled by greed to buy now, you will likely fall to panic and sell on such a drop. That's why I use the trend channels to tell me when to buy and sell. I buy near the bottom of the channel, and set my mental stop just below the channel. I want to know exactly where to sell. It doesn't work every time, but it's a lot better than guessing every day.