To: Bruce Brown who wrote (22739 ) 4/14/2000 1:18:00 PM From: Pirah Naman Respond to of 54805
Guaranteed to Happen When the market opens way up and the public's buying, they're likely to end up on Skid Row by the end of the day. The smallest holding in your portfolio will show the largest percentage gain in your favor, and the largest holding will be the one that's down the most. When stocks have had a big run-up and people finally work up the courage to buy, they'll soon be spending time wondering when their stocks will come back. If you're a bit overextended, you'll find yourself still looking at the screen after the close in expectation that the prices will change back in your favor. When you pick up the phone and hear your broker saying, ``You were filled at your price, sir,' you know you're in trouble. One week after the market sets a new high, the percentage of optimism among investment advisers will climb, and pessimism will increase after a decline. Whenever the Internet stocks are way down on a Friday, the amount of mating that takes place over the weekend will drop by 50%. The bonds and stocks will go in the same direction four days in a row, and then when you play it the fifth day, they'll wildly diverge. When a stock has a strong move against me at the close and I hold it, knowing that it was just random sell orders in an illiquid market that caused the decline, it will invariably open down 5% against me the next morning on news reports that analyst X issued a sell recommendation to his Internet clients in the late afternoon. A stock owner who constantly takes small profits will lose all his money. It's the same thing with the gambler who tries to take the casinos for one or two chips on each series of play. The casinos and the brokers love such customers, because they know that the player's winnings are limited and that the house edge will ultimately grind the player into total loss.