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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology -- Ignore unavailable to you. Want to Upgrade?

To: chris431 who wrote (10314)	1/28/2000 9:55:00 PM
From: Lenny Rosow	Read Replies (1) \| Respond to of 18366

Chris, I think you just proved Jim and some others point of view with your example of ALTR. You stated, "For example, I went long on ALTR @ 60, sold at 70 1/4 a few days later. I then shorted it at 70 1/4, covered the next day at 67 1/4 and re-shorted right before closing the same day at 70 3/4. It was a trade based not on what I think about the company, but what I believe about the companies stock. It's now trading in the low 60's and I don't believe I will short it again b/c if it does continue downward, it may do so rather slowly. In fact, I may go long on Monday, but not for the long term." By your above trading style it shows that you are either a day trader or a very short term trader. That is YOUR TIME FRAME! Most of the people on this board from the get go are LONGTERM traders. They either have a 9:00-5:00 job which precludes them from day trading every minuscule movement in a stock or they simply hold these stocks for the long term in their IRA/Roth IRA account. Each time frame is fine as long as each individual trader trades & views their charts in that particular time frame. Now take a look at ALTR on a WEEKLY TIME FRAME. bigcharts.com You see a different picture don't you. The 40 period EMA has held price all the way up since November of 98'. You see a trend followers dream of higher highs and higher lows since the end of a trading range in October of 98'. The 14 period RSI, except for a tiny blip in mid February 99', has remained above 50 since October of 98'. A trend doesn't get any stronger than that! So do you now see what a longer term trader may look at? ALTR went from 68 down to 45, held on at it's 40 period EMA and then proceeded to shoot right back up to a new high of 73. There are no guarantees that this stock will now go to new highs but in my view that's what TA is for. I wish every stock I owned had a chart that looks like ALTR on the Weekly time frame. Just remember one can try to pick tops & bottoms but the only good bottom pickers I know are Monkeys. I congratulate you on your ALTR trade but in return I think congratulations are in order for the long termers who have held that stock for a year and a half. Now do you see the long term EDIGers point of view. Yes, money has been lost since Monday's high. But to a long termer the key is and will always be higher highs and higher lows. This creates that nice 45 degree angle heading upward & to the right. That picture is the ultimate goal of a long termer. Hope this explains the difference between short term and long term trading. Some people just don't need the day to day action of the stock market to get their engines going. Respectfully, Lenny PS - Chris I can't seem to get the Weekly chart up from the above link so click on it and the Daily will pop up. From there switch the time frame to weekly and 2 years and throw up a 40 period EMA & a 14 period RSI to view what I am looking at - Lenny