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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading: -- Ignore unavailable to you. Want to Upgrade?

To: debby who wrote (692)	3/2/2000 8:17:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 769

Thank you for your question on investment do's and don'ts. Your question is best answer in this way. You must have been attracted to high flyers, which has more gyration than wall flowers. You are also probably fascinated by the gyration going up. This is the natural human instinct. However, in stock market making, the price is moved up to sell stock to investors and the price is pulled back to buy back from stockholders. When too many people buy, then the stock is pulled back for the stockholders to sell to balance the demand on stock. In the case of SCON, the yearly chart looks like a blowoff. The one day chart yesterday looks like a pull back. If you use technical analysis there is no break out yet. Meaning it has not bottomed yet. Since superconductors are technically or scientifically a technology that has been around for 50 years, any sudden real break through is not very likely. Fundamentally, the company has to generate much revenue to appreciate the stock. Or else it is just a blowoff. However there may be venture capital behind this stock; so the stock could be valued substantially more. Meaning big money will continue to invest in this stock. Having said that, it does not mean that short term or long term on momentum, you can not make money with this stock. You have to watch charts on this stock every chance you get to make your investment decisions. Do study everything available on this company. Don't make sudden investment decisions you may regret. Small investments are not penalized on internet brokerages. Round lot investment is a thing of the past.