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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Bo Le who wrote (513)	11/2/2000 3:37:43 PM
From: tradermike_1999	Respond to of 74559

That kind of thinking is why so many people lose money on margin calls. It's called the pyramid market. And that is in fact how the stock market operates. Most of the money lost in the market goes to a small 10% group of winning traders. 50% of people lose money in the market, another 25% make a very small gain, and it is only the small 10% who make a lot of money. Everyone else just tries to chase the pyramid. Yep, CMGI, YHOO, and other garbage stocks might go up the next few months. They might fall to their proper valuations too. Buying just on that is like playing craps. You need some sort of strategy or method to bring to the market to safely buy these things. Otherwise they are time bombs. They can all blow up. Look at what happened to ORCL today - a "safe" tech stock.