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Strategies & Market Trends : ZenWarrior's Trading Paradise -- Ignore unavailable to you. Want to Upgrade?


To: p40warhawk who wrote (322)4/3/2001 4:32:53 PM
From: manfmnantucket  Read Replies (1) | Respond to of 2462
 
pea fourty, by "value" I didn't mean "monetary value" ,
as in "valuable" I meant something more like
"moralistic" - e.g., references to "good" and "bad" companies, and the implication that short trades
are somehow inviting "disaster", and the notion that
those who choose to endure the pain of losing lots
of money are "strong hands" - what are those who choose
to limit losses, weak cowards?

There's merely profit vs. loss, and growth vs. shrinkage,
and "valuation" is all perception based on those
things - perception is entirely relative, there's no
absolute formula that ties profit/growth to stock trading
price, except after-the-fact when analysts invent
ways to make rational comparisons between prices.

And this distinction between "investors" and "traders" - loaded with moral/value judgement. In my mind,
an investment a) benefits the company and b) has an ROI
to the investor. By that definition, buying any
non-dividend-paying stock is a trade/speculation, not
investment. One's only hope is to resell at a different
price and pocket the difference. So most self-described
"investors" are traders, no matter how much emotion
they attach to the act of purchasing stock.

am I clearer?

MfN