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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 (739)3/24/2001 6:22:39 AM
From: Arthur Tang  Read Replies (1) | Respond to of 769
 
When you go for long term investment(5 year outlook), Vince Ferrel(money manager who talks like a NYSE specialist) suggested to look at the technology stocks because they are now cyclically and yet also have growth(good down turn recovery prospects). Technology stocks are no longer wild and wooly; and thus have sudden death risks. Planned obsolescence and replacement took out the wildness.

Technology increases productivity and reduces cost of running businesses. Surplus manpower will be utilized for growth of a rolling new economy. Productivity creates deflationary trend which allows discretionary income to pump the economy.

He also suggests that you should anchor your portfolio with $40 stocks and be aggressive with $10 and $20 stocks. Those $10 and $20 stocks have the most growth.

Such is life for the investors in a severe pull back situation, when you might face margin calls and dipped down take out of your stop loss orders. Learn to survive and invest wisely.