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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Tito L. Nisperos Jr. who wrote (12569)	12/2/1997 4:53:00 PM
From: gambler2	Read Replies (2) \| Respond to of 70976

3COM just gave a warning. This looks bad for Techs Wednesday. Hopefully AMAT will be excluded once again as it was today.

To: Tito L. Nisperos Jr. who wrote (12569)	12/2/1997 5:48:00 PM
From: Tito L. Nisperos Jr.	Respond to of 70976

I'm afraid I started another ruckus---this time about short-term trading. I'm not urging everybody to be frequent traders. I mentioned only about Yoyo trading as a means to lower the cost of investing as the stock is temporarily Yoyoeing itself with nowhere to go. One may have some cash idle like $10,000, then find it good to buy the stock at 33 and did bought 100 shares at that price. Then when the stock went up to 38, he thought the stock is headed back downwards to the lower 30s---so he sold the stock and found himself richer by 400 bucks (after subtracting commissions)...Then he has some use for the money like buying a DVD and enjoy some movies to while the hours away sparing himself of deppression waiting for the stock to go back to the 50s...

To: Tito L. Nisperos Jr. who wrote (12569)	12/2/1997 10:38:00 PM
From: Lee Penick	Read Replies (1) \| Respond to of 70976

tito and all, Re - "Jim S, keep tabs of the higher highs and higher lows in succeeding days in an up-trend; lower highs and lower lows in the down-trend. Soon you will have a better guess of when to sell and when to buy." I have a little experience with this and you may benefit from my slight success and larger non-success. I was doing this in a stock recently, and making very good money for 7 weeks. Thought I found the golden goose for awhile. I even knew the drawbacks but couldn't stop it was so fun and profitable. Basically the stock was in a trading range and stayed there for the 7 weeks. I would buy low and sell high, then wait for the next low. I made many round trips this way. Probably 20 trades or more in 7 weeks. (discount brokerage makes this possible these days) Unfortunately, when I would sell, that of course would limit, or end the upside potential. (with AMAT being low, you may not wish to limit your upside potential) Then I would buy back in several dollars lower than I sold. Now I was fully exposed. Market could go up or down. Well it worked 20 times or so, then the fundamentals changed and it took a good drop. My upside was limited but not the downside. That destroyed the earlier gains. (not the happy memories however) With AMAT being low, there is less downside risk, buy in reverse, this could limit the upside potential. Perhaps if you add the purchase of a call option or leap in addition to the trading, you could still keep the upside we all want. In my case I should have bought a put, but was too cheap and didn't think it would go down very far....I was wrong. (should have paid my insurance like a good boy) I don't clame to know it all, but hope to learn from my mistakes. Wanted to share this one with you so others don't learn the hard way. Good luck, Lee Tito, since you are a leaps guy, I thought you would be trading leaps or short term options, not the actual stock, caught me by suprise.