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Strategies & Market Trends : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Paul A who wrote (3569)	11/24/2000 1:18:56 AM
From: Street Hawk	Read Replies (1) \| Respond to of 19633

"When the market is so horrendous on the long side like it is now, id rather catch a falling knife like ICGE that can only fall a total of 6 more points rather than try and catch CSCO or MSFT that can easily drop 20 or more points if we get capitulation.. " Points don't matter. What matters are percentages. ICGE falling 6 points is 100% of your capital invested in that stock. CSCO or MSFT falling 20+ points is not even 50% of the capital invested in that stock. Granted, a stock like ICGE might have a floor based on value of assets and cash, but, that hasn't stopped stocks(i.e. STMP) from going continually lower beneath current actual book value if the projected trend of cash outflows is large enough.