SI
SI
discoversearch

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


To: Arthur Tang who wrote (714)8/20/2000 8:48:22 AM
From: Arthur Tang  Read Replies (1) | Respond to of 769
 
Concept of putting all your money in one or three stocks?

You better know what direction these companies will be heading into? If you depend on population increase of 1% and economical improvement by 3-4%; your risk of technology obsolescence or market saturation will destroy all your gains within 6 month from your date of investment.

Common knowledge of diversification of investment has been around for ages for just that kind of safety in investment.

Therefore technology enthusiasts have to know the limit of technology and the company research and development efforts. Then, the market share distribution relating to the company you put money into? In addition, you have to know the financial planning by the management. Whether you are lucky enough to invest in a management who has a sound business plan which can make you rich later.

Above all, the dynamics of stock trading and technical balance of longs and shorts must be watched each day. Many a large investor instead of slow accumulation could suddenly invest large sums and creating large shorts which could ruin your investment and your life as well.