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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (22239)	4/4/2000 5:25:00 PM
From: freeus	Respond to of 54805

rehedging As many of us are going to stop working for others or already have, I think we need this discussion! Covered calls are one way that I use. The problem is how far out and how deep? I never want to have my core stocks taken away from me except at ridiculously high prices. But that means not much money comes in from the sale of the call. Also I don't like them too far out because of the changing market. Also as I mentioned last post, a person could always have a certain amount in cash, for expenses and for buying on dips, even buying knowing that the buy is short term in nature. Freeus of course if we are really really adept at finding the new gorillas early, we'd have so much money we wouldn't have to hedge...just sell a few shares when we needed to pay a bill.

To: Tom Trader who wrote (22239)	4/4/2000 5:40:00 PM
From: 100cfm	Read Replies (6) \| Respond to of 54805

Well considering the fact that at about 1:30 this afternoon I would have needed the dental records of my portfolio to recognize it from 3 weeks ago, it wasn't such a bad day. Lessons Learned 1. DON'T PANIC 2. If panic sets in, getting into fetal position helps. In extreme panic situations as in 500+ down days, sucking thumb while in fetal position is permissable. 3. Never chase a pre tornado stock, ie elon and cree. 4. Csco is the rock of gibralter of gorillas. Uncle Frank, I would be curious to hear how your csco leaps reacted during the two past days especially at today's bottom. 5. Getting off the margin addiction was a smart move. 6. Owning strictly Gorillas is the best portfolio insurance. 7. I now know the true meaning of hold kings lightly. They get crushed the same as the rest of the commoners. 8. Read TRFM as often as possible. It will help keep you out of the fetal position. As long as we are forced to pay the tuition, the least we can do is learn from it. 100@nowcomingoffOpusintervenous

To: Tom Trader who wrote (22239)	4/4/2000 10:24:00 PM
From: porkbay	Read Replies (1) \| Respond to of 54805

Re; hedging portfolios Although hedging has its uses, my understanding of LTBH is that timing and leverage are to be used sparingly since both can induce sleepless nights. That being said, however, I am a believer in setting certain goals and markers as guidelines for thinking about buying and selling. As an example, today I would think about selling stocks when the Nas has moved back up around the 5000 mark. When it does, I would take a good look at my portfolio and do some pruning to build up some cash balances. At that point I would also start to think about adding to winners at the next downturn, when a target stock has dropped some 20% or more from its high. I am able to look at today as a buying opportunity and at the market last month as a selling opportunity because I am confident of two things-that the underlying conditions are solid and that the market is subject to these rapid runs in both directions. J P Morgan, when asked what the market would do, looked down his long, red nose and muttered "It will fluctuate". Be warned-when the economy goes bad (see the 1970s), all bets are off. By way of disclosure, I use margin for leverage and may have an occasional bout of insomnia but my gorillas only rattled their cages today. Porkboy