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

To: Stephen who wrote (33552)	11/17/1999 8:28:00 AM
From: HairBall	Respond to of 99985

Stephen: I said several times on MDA, that this Market is over extended in historical terms. However, I have also stated I am trading this market almost every single day. There is a mania going on and folks should try to profit from it. Money management skills are just as important as stock picking. A lot of what you do depends on your personal expertise and knowledge of the markets (ability), your age (investment horizon) and investment strategy (risk tolerance). I suggest that a balanced approach is best and I can not tell you what that approach should be. It really depends on how much money you have and the above mentioned variables. I read some of the hot threads like DELL (especially in the past) and now QCOM and you have to winch at all the cheer leading going on. It is amazing how many folks that get into a momentum stock on luck or advise and "now" they are all experts in investing...<g> The secret is to get into one of these momentum stock early, then you have enough profits to sit through the roller coaster. However, all momentum stocks are not all QCOM's...<g> The cheer leading in the momentum stocks continues up and until the bottom falls out. So yes, participate in these mania issues, but be cautious and take some profits along the way. What you do with those profits depends on the variable I mentioned above. I suggest no matter what one's investment variables some of the profit should be placed in safe pastures. I suggest no one assume they are a trading/investment dynamo, just because they fell into a QCOM. A lot of folks will give back much of their gains when this ends, because most will not believe it has ended when it does. Personally I do not think we are going to see a dramatic V top. I think if and when a plunge comes it will be after a roller coaster down trend and folks finally realize it ain't going back up. Then I expect a massive buy the dip rally eventually leading to another plunge. When I publicly post a caution I don't let that keep me out of the market, I shift my asset allocation and reduce high risk exposure. Good trading... Regards, LG