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Strategies & Market Trends : Groundhog Day -- Ignore unavailable to you. Want to Upgrade?

To: mph who wrote (4366)	5/11/2002 3:00:07 PM
From: Alan Smithee	Respond to of 6346

Morning M. Hope all is well in your neck of the woods. We actually have sun today.

To: mph who wrote (4366)	5/12/2002 8:34:44 PM
From: Don Pueblo	Read Replies (1) \| Respond to of 6346

I assume he's not on margin either. But some other people are. Penson, a large clearing firm, has a limit of 3.50, even though most of the people that answer their phones don't know it. I believe most of the big online day trading borkers are between 3.50 and 5. If old JDSU decides to trade down below 3.50 for a week or two, there will be some margin calls. And they don't leave messages on your machine or anything, they just sell the stock and tell you about it afterwards. I don't know where this 'average down' idea came from in the first place, but I would be willing to bet it was a brokerage firm that thought it up. It actually makes total sense as long as you don't run out of money to average down with. That's the major problem with averaging down.