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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01 -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (11529)	8/25/2002 7:02:11 PM
From: James Strauss	Read Replies (2) \| Respond to of 13094

Its very popular to blame the common investor for the 90's bubble, but they were taking their cue from management practices. Corporate leadership doubled, then doubled again, and doubled again their salaries and bonuses, additionally granting themselves stock option pay packages that required inflated results. JG: The average investor has to take responsibility for their own decisions... Yes, there were crooks in the corporate and brokerage ranks but the prevailing mood in 1999 and early 2000 was that of a casino... People were bidding up companies like K-Tel to ridiculous heights... That had nothing to do with cooked books... It was simply the expansion of the greed factor seen at the end of bull markets... There will always be crooks cooking the books... That, we can't control... What we can control is whether we approach the market as gamblers or investors... Eventually the house takes the gambler's money... As investors or knowledgeable traders, it's our responsibility to do our homework before we plunk down our money... Even technicians that wouldn't know a fundamental fact if it fell on them are responsible for knowing the trading patterns of a stock before buying it... Simply chasing stocks higher and higher until the market took away all the musical chairs was the classical inevitability of a bull market without any new buyers but plenty of sellers... Using breaks below the 50, 100 and 200 day moving averages as signals to get out of stocks and the market is a relatively simple way of avoiding big losses while riding the fat part of the bull moves... The Buck Stops With Each Of Us... : > Jim