Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : TATRADER GIZZARD STUDY--Stocks 12.00 or Less..... -- Ignore unavailable to you. Want to Upgrade?

To: NW_Trader who wrote (13658)	1/27/2000 6:25:00 PM
From: stock talk	Respond to of 59879

<Question to the thread: would you could you take a gun and go out tonight and rob a stranger??? Think about for awhile, it will help you trade. Answer tonight, if I get a chance. > Answer : Of course not ! First let me say I am a capitalist by any definition, however I believe (Mark I guess I do believe in something <gg>) its crucial to be an ethical capitalist. Many would argue that, that is a contradiction of terms. A common problem I read about is sellers remorse. Two simple ways to deal with that is to open a separate brokerage account for long term holds and only review it once a month. Second, on your short term trades, understand that "risk" accelerates exponentially with the price of a stock. As a trader you are being compensated in direct relation to the amount of risk you are willing to assume. Meaning stock "X" is selling at $1.00 with a book value of $5.00 and a yearly high of $10.00 and a low of $2.00 does not represent the same risk/reward as stock "Y" selling at $20.00 with a book value of $1.00 and a yearly high of $20.00 and a low of $1.00. Case study: VRTL VRTL at $2 did not represent the same level of risk as it did at $20. Here is a company with 20 million in annual sales selling at a market cap of 400 million. Therefore those who sold it at $12 only to watch it run to $20 should understand the buyer @12 assumed allot more risk than the buyer @$2, and deserves to be compensated for the added risk. Keep in mind just as you wouldn't rob someone with a gun, there is no difference to do it with a stock.