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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (5197)	8/12/2002 10:41:28 AM
From: Ron Dior	Read Replies (1) \| Respond to of 24758

Let's do some math. JXM and Ahhaha both have $500. Ahhaha buys 100 shares of JDSU at $5/share when he rings the bell. JXM waits a couple of months and picks twice as many shares at half the price that Ahhaha does. Fast forward 20 years when JDSU hits $20/share. Ahhaha has a 15pt gain on his stock and a peachy profit of $1500. Jorj sorry to say you are completely missing the point. Ah mentioned conviction and also gambling. When one is gambling with this market conviction does not exist. In your poor example you left out the fact that JXM has no conviction on his purchase. So over the next 20 years JXM would have traded JDSU possibly hundreds of times until his original $500 was non existant. Makes Ah's peachy 300% gain look pretty good! just let me know if you want me to dig up some posts right around that timeframe where I discuss the direction of JDSU. Any respect I had for you has just plummeted about 300%... Ron Dior

To: Jorj X Mckie who wrote (5197)	8/12/2002 11:51:21 AM
From: GraceZ	Read Replies (2) \| Respond to of 24758

JXM only has a 17.50pt gain, but it is on 200 shares and therefore is a whooping $3500 profit. The part you miss is that JXM trades out when it doubles within days of coming off the low and doesn't go back, he doesn't hold it the twenty years, he doesn't even hold it a year even though one could reason that if it will survive it will be far higher three years from now or phased out of existence. The second part you missed is that Ah doesn't buy at 5 he waits for it to finish basing and buys as it comes out of a base. I believe he said it had put in a major bottom, if you follow on subsequent posts you'll see , one doesn't buy there. This is the point at which you start to get interested, where you start to follow the fundamental developments closely and get yourself ready for a move into an issue. It it doesn't break out of a base or if the base fails you wait.