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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: TheBusDriver who wrote (12183)	5/12/2002 10:46:50 AM
From: Frank Pembleton	Read Replies (4) \| Respond to of 36161

Wayne... SWG thing... sell it, damn it! :) Seriously... if you're "Trading for a Living" you might want to move on ... there's been a couple of stocks in my speculative efforts with great promise and hope of riches that I've given up on and I've never regretted it... even if they do eventually pop. There's the old analogy that a stock portfolio is like planting a garden - all you need is a little patience - but you also need the intestinal fortitude to pluck the weeds. [Keeping in mind that I'm playing the POG as opposed to the companies ... I tend to look for high beta stocks] After the Cisco Bin Buying binge of last week - that brief moment of euphoria turned to gloom and doom in an awful hurry - by Friday the bear was back. IMHO... it's important to have a portfolio that move inversely to the broad markets, I wouldn't want to be holding a stock that didn't have a negative beta. Holding cash would be better... My last thought: When in May, go away -- It seems to me this bear market presents a new scary thing every other week. Regards Frank P.

To: TheBusDriver who wrote (12183)	5/12/2002 9:56:42 PM
From: isopatch	Read Replies (1) \| Respond to of 36161

Wayne. <need to get better at adapting to how the market has changed> Exactly. You've just answered you own question. Easier said than done? Sure. It's a challenge for everyone, if they're honest enough to admit it. I've never thought that doing this for a living was easy. Value investing is just one approach that works in the markets. But a sector or a stock in a bull market rarely stops appreciating in price when it become "fairly valued". We all know from experience that it more often goes to the opposite extreme of becoming overvalued. Once a sector is out of the base building aka the accumulation phase, it enters the markup period. And before long it's stocks are no longer bargains. However, it's too early to sell. Finally the parabolic or blow off stage is reached and that's usually when it's time to firm up your selll stops. Yes, it's difficult to mentally and emotionally adjust to these very different environments. I know it is for me. OTOH it's one of the many things that make trading and investing so interesting and enjoyable. JMVVHO, of course. Isopatch