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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: Taro who wrote (9058)	2/6/2010 11:57:23 AM
From: Sr K	Read Replies (1) \| Respond to of 20435

A basic rule of investing is diversify, diversify, diversify; or don't put all your eggs in one basket. The 50% rule is in there for good reason. And forcing every player to check the 50% threshold before placing an order, or face the penalty of a voided order if exceeded, is an important rule and policy. Players can get around it by wording their orders with "and with the proceeds invest the maximum allowed in xyz" or similar wording, but it still makes them think about the 50% limit, look at their portfolio, and think about what order he is about to place. Almost all Elroy's end-of-day updates are easy to spot - they start with the number of days remaining. Check the prices that day to check for any wide price swings within the portfolio. Still, there can be wide swings even from 3:30 to 4:00, so even if a stock is say, 46% of a portfolio, you might not know if it will stay under 50% at the close. That's the best answer to Elroy's question about why a player might place an order close to the end of trading.