To: rkf who wrote (2616 ) 5/6/2000 11:34:00 AM From: Julius Wong Read Replies (2) | Respond to
From the Technology Funds article by Dr. Paul B. Farrell, 13 lessions :1. Don't overreact. Worse thing you can do is dump when down. While the smart money's buying on the dip.2. Don't jump from technology. Where you going? Buffet and Robertson found out the old economy's not the answer.3. Be diversified within technology. Don't lump them all together. There's core tech stocks. Then there's speculative technology. 4. Be in the right industry sectors. Hey, "not rocket science. Ask yourself, will I buy this company's products? Does it make a difference?" 5. Ride the momentum. But protect yourself, keep adjusting your stop-loss orders to 15% below market on the way up. 6. Watch the volume. Track volume, buy when it's down. 7. Reality check: Logic counts. Check fundamentals. High multiples, big losses and first product 3 years out, that's trouble. 8. Disappointments are death. Miss EPS by a penny. Sales by fraction. And selling is merciless. Get out fast. No loyalty. 9. Watch for early sector death. Like 'business-to-consumer.' Anyone can sell vitamins, books, CDs, computers on the Net. 10. Think long-term tech investing. This new magazine's about long-term tech picks. But you'll also find some "screaming shorts" to help you protect your downside. 11. Don't buy tech stocks on margin. Now hear this, do not buy tech stocks on margin. Period. Never. 12. Watch out for the lockup period. If you're going to play the IPO game, pay special attention to when the insiders lockup is over. 13. Don't watch TV. High stress! Besides "TV reporters have no idea what's going on, nor why. No one really does. Their job is not to explain, or to reassure. Their job is to keep you watching. They do this by boiling your emotions. Disasters are great for TV. Viewership goes up. They sell more ads." Especially, don't watch financial television channels!
