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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (30920)	12/11/1997 10:34:00 AM
From: James H. Irwin	Respond to of 58727

Tom, I liken stock price movement to the flight of a well struck 3-iron. Stocks go up for 180 yards and come straight down for the last 20. It has to do with the concept of when you have cash you can buy, sit or hold a stock/future/option/real estate. But when you own something you can only go to cash. With everyone using stop losses (some formal, some informal) the fear emotion takes over and people say 7 or 10 or 20% and I'm out. Depending on how tight one sets their stops. A customer of mine while in the business of selling research to institutions had a firm 20% and out rule...he didn't care. 20% down and he only had to generate a 25% return to get whole. 50% down and he had to generate a double...a much more daunting task, as I'm sure you'll agree. Let the trend be your friend, don't overmargin and live to trade another day. Sounds like you've caught the recent trend. I've never made as much money shorting as I have going long, historically, because the time frames are a bit longer, so I tend to sidestep, but when you catch a blow up/puke shot, they can be profitable. Happy/Profitable Trading bon chance. Jim P.S. The above is only MHO...no disrespect for/towards others with differing sentiments.