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.

Technology Stocks : Alliance Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: SBHX who wrote (7000)	2/28/2000 9:58:00 PM
From: Jibacoa	Read Replies (3) \| Respond to of 9582

<<<The actual danger as I see it is not the fees (or even the taxes you'll have to set aside --- though this becomes a problem for the 5 and 10 baggers). It's actually, trying to time the market in itself.>>> S b H: IMHO that is where TA is helpful. After you have done your DD and have decided to go long on a stock, the price chart is where you can find a "good entry point". Remember the best time to buy a stock is on the way up. Some times is not good to buy stocks "too cheap" although "bottom fishing" may be profitable if your research is good enough. That approach always takes a little more patience since it may take longer to see god results. The one thing to remember when you buy a stock is not to make a second purchase unless the first one shows you a profit. NEVER try to average down a loosing game, ALWAYS FEAR that your LOSSES could become worse and HOPE that your WINNINGS will increase. In my own experience, when I go long a stock I decide beforehand how much % wise I am willing to loose, If my "entry point" proves to be a wrong one, I try to cut my loss and prevent it from going above 15% of my original price. Remember what W.B. reportedly said when asked about his rules for investing on stocks:"My first rule is not to loose money." and the second rule: not to forget the first one. That was also said before by Jesse many years ago: " It doesn't pay a man to be wrong. You have to stop being wrong in order to be right." And "When I take a loss, it usually doesn't bother me as I forget overnight, but NOT TAKING THE LOSS. THAT IS WHAT CAUSES THE DAMAGE TO THE SOUL AND THE POCKET-BOOK" So if you have decided how much you are willing to loose at your entry point, you should have no big problem in knowing when to sell if things go against you. The more difficult decision is then when to take profits. And here I feel TA is also helpful. The question of when to take profits also depends on the type of account you are trading. Brokerage fees have come down to be an insignificant part of the equation.The taxes are more important if you are trading on a taxable account, that is why it is better to do "short term trading" on an IRA account provided that you always keep present W.B.'s Rules. All of the above again is IMHO, but for me at least it has given GOOD RESULTS. Good luck. Bernard