To: Greg Butcher who wrote (820 ) 11/23/1997 7:17:00 PM From: Cadaver Read Replies (1) | Respond to
DEC: Au contraire, DEC is still strong. Unless there is a sharp drop which forms the head, this is not a H & S.No matter how smart you are or how much you know, unless you have the sobreity of a judge, the detachment of a monk, and the patience of a hunter, you cannot expect to consistently win in the stock market. Sobreity of a judge: Be fair when judging stocks. Do not be influenced by analysts or any other opinion. Ultimately, it's your money that's at stake, so you have to be the final judge. No rule, lemma, law or statistic is above common sense. In other words dont get fooled by statements like: "Stock xxx has a PE of 687! Short it!"Without sobreity you make the wrong choices. Detachment of a monk: Dont think too much about how much money you will make if the stock reaches price XX. In fact, dont think about money. Dont fall in love with stocks. Dont hate Microsoft stock because you hate Bill Gates. Do not WANT the stock to go to price XX. Do not WANT the company to succeed or fail. You shouldnt give a damn about what happens to the stock, the company, the product, the CEO. You are in the stock market to make money for yourself, not to ensure justice, equality and peace to the world.Without detachment you'll get killed even after making the right choice. Patience of a hunter: Timing is everything in the market. To maximize profits and minimize losses, you have to act at the right time. And perhaps more important, you have to determine if you should act at all. Buying or shorting too soon, selling or covering too late can kill your profits. If you are unsure about a stock, dont take a position just because you have to take a position in some stock. You make money for your broker, that's all. WAIT for the right opportunity.Without patience, you might not make a profit or actually take a loss, even if you had judged the general direction of the stock correctly.
