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Non-Tech : Save The World Air Inc. (ZERO) -- Ignore unavailable to you. Want to Upgrade?

To: peter michaelson who wrote (377)	10/31/2000 11:15:10 PM
From: Q.	Read Replies (1) \| Respond to of 445

OT, re. what your trading strategy was to deal with the unlimited potential loss facet in a manic market. What do you think about these two principles: (1) Consider it only if the valuation appears to be not just high, and not just extremely high, but actually beyond belief. For example, a market cap of several hundreds of millions of dollars for a BB stock with these three criteria: no revenues, a lousy balance sheet, and dodgy principals. (2) Think SMALL. Consider a position where you can tolerate a 5X spike in the price, which is actually pretty rare except in truly manic market condictions like last winter. If you start out at <0.5% of your portfolio, you can take the pain if it quintuples on you. You just have to be very confident in your judgment about the merits of the stock. Keeping your focus on the market cap rather than on how much the stock price has gone up will help your confidence in a squeeze.