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To: Boplicity who wrote (4601)	9/4/2000 12:57:18 PM
From: Sig	Read Replies (1) \| Respond to of 13572

All aboard Toot-Toot... OK, lets not sell our seats cheap to these people(G) biz.yahoo.com Sig

To: Boplicity who wrote (4601)	9/5/2000 12:04:48 AM
From: Boplicity	Read Replies (1) \| Respond to of 13572

Someone by PM ask me about when to walk away from a stock below is my response it's little winded but I could write chapters on the life cycle of a run. <<I never let a mistake keep me from buying a stock. Most recently I thought SEBL was going to take a rest, but then it had wash out, so I bought it. One can't be blinded by conviction in the market, you have to let the market speak to you. With PWER, I just stop following it and I wish I didn't since the premise behind the move is still intact. That said, (this is going to sound confusing), it is a good idea to walk away at times. I good example is RMBS. RMBS is like the siren calling only to drag you in near the top after the run has happen already. Another example is if you had a loss on trade, there is a tendency to come back to a stock to prove your right in the first place, it's only human nature to want to do that, but in the market, most the time, it's best to not go back to a stock once you have a loss in it, especially if the stock is a small cap. Another example of when to walk away is when you take a gain after you feel a stocks has topped. It's human nature to stay with what has worked and feels comfortable, but in fact you could be buying back in a stock right before it really drops (This spring should of really hammered this one into everyones minds) since stocks tend to recover after the first initial sell off after a top. Investing is always a battle against human nature but there is a lot of logic in not following the normal human reactions to a situation. Here is a simple example. Most green investors just starting out like to buy when there is a lot of excitement surrounding a stock, but if you apply a little logic to that you can see that is in fact could be the worse time to buy stock. Here is the reason why. It take's many people to drive a stock higher, once stocks is near it's top the investors that bought lower are standing around talking to themselves celebrating with vision of grandeur counting cash that isn't real yet, a green investors will see how well the celebrators have done so they want to join the party but in fact they the last ones holding the hot potato with no one left to buy it from them. Here is another example of human nature. Once it's obvious a stock is going down, fear, the most primal of all emotions, takes hold and spread fast too, so a lot of investors sell at the same time, that's why drops happen faster then gains most the time. >> Greg

To: Boplicity who wrote (4601)	9/5/2000 12:12:32 AM
From: Boplicity	Read Replies (2) \| Respond to of 13572

Someone by PM ask me about when to walk away from a stock below is my response it's little winded but I could write chapters on the life cycle of a run. First the question then my response. <<If you would be so kind, I have a question about your investment style on a stock like PWER. You have said it is one of the stocks you should have held this year but didn't. You said every year there are some this happens to. Would you ever buy back into it after the split or do you never look back once you have made your decision to be done with it? >> <<I never let a mistake keep me from buying a stock. Most recently I thought SEBL was going to take a rest, but then it had wash out, so I bought it. One can't be blinded by conviction in the market, you have to let the market speak to you. With PWER, I just stop following it and I wish I didn't since the premise behind the move is still intact. That said, (this is going to sound confusing), it is a good idea to walk away at times. I good example is RMBS. RMBS is like a siren calling only to drag you in near the top after the run has happen already. Another example is if you had a loss on trade, there is a tendency to come back to a stock to prove your right in the first place, it's only human nature to want to do that, but in the market, most the time, it's best to not go back to a stock once you have a loss in it, especially if the stock is a small cap. Another example of when to walk away is when you take a gain, after you feel a stocks has topped. It's human nature to stay with what has worked and feels comfortable, but in fact you could be buying back in a stock right before it really drops since stocks tend to recover after the first initial sell off after a top. Investing is always a battle against human nature but there is a lot of logic in not following the normal human reactions to a situation. Here is a simple example. Most green investors just starting out like to buy when there is a lot of excitement surrounding a stock, but if you apply a little logic to that you can see that is in fact could be the worse time to buy stock. Here is the reason why. It take's many people to drive a stock higher, once stocks is near it's top the investors that bought lower are standing around talking to themselves celebrating with vision of grandeur counting cash that isn't real yet, a green investors will see how well the celebrators have done so they want to join the party but in fact they the last ones holding the hot potato with no one left to buy it from them. Here is another example of human nature. Once it's obvious a stock is going down, fear, the most primal of all emotions, takes hold and spread fast too, so a lot of investors sell at the same time, that's why drops happen faster then gains most the time. >> Greg