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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Henry D who wrote (46037)	4/30/2001 9:04:44 AM
From: kdavy	Read Replies (1) \| Respond to of 70976

Henry D, My gut feeling is that we will have an upward bias and are not likely to see the lows for a while. We are more likely to be range bound for amat (49-60). In late July the earning warning season will set the tone next few months. Until then it will be a season for traders. My losses are rarely greater than 2 points for any trade. Most of the times it is close to 1 point. However, the gains range anywhere from 2 to 6 points and sometimes 8-10 points (usually when some news/or oversold conditions is responsible for a rally). I keep stressing this point: We are not here to lose money but to make money. So minimize the losses and try not to hold the losers. For each loss we have to make double that money to be ahead. I use protective puts 1 for each 100 shares and always in money. This works well when the stocks are too volatile. Right now I have intc at 29.50 and bought may 32.5 puts at 3.50. Plan is to sell the puts if stock falls 3 or more points and sell the stocks if the the stock gains 3 or more points. And then wait for retrace. If stock stays between 29-31 then I will end up losing one point. I use protective puts only when I have large positions. regards. Kdavy