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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (1985)	12/19/1997 8:25:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 12617

Don, Correct me if I am wrong....I thought the AMAT and RMBS together made up 140% of your account, that is you spent 80kish on these in a 50k account....had a pretty sizable debit? Are you saying that you doubled up, bought another 80ish k totally concentrating in two positions, 160ish long market value with some very big debit, in an account that originally were keeping at 50K cash? To me, it sounds reckless and one bad day from a truly bad mistake. How did you know that today you wouldn't have been down another 2 or 4 points on each stock? I see the errors you made as the following: 1. You leverage 140% of your cash into two positions WHICH YOU TOOK HOME. 2. You let them get away from you for a few straight days. I believe these are both 4 or 5 points from your number. 3. You doubled down and became even more concentrated in these two positions, which must be large percentage of your cash, atleast its 200% of what you said you wanted to trade with. Afterall, 2000 amat and 2000 RMBS in a trading account would not be considered prudent. If I had a customer with that kind of concentration, on my recommendation, I would lose my job. Any, I hope the position works out for you. If it does, I hope you realize how lucky you are, that it has nothing to do with skill. This move is one I have seen traders make, go against them, and find themselves out of the game, done. Hopefully it works out and you realize how risky this move was relative to the rewards you typically shoot for as a trader, I believe you said was 3000k per week. This is amove that could put you out of business if RMBS goes to the 13 that it was at one time this year and AMAT's 12. Often I have seen traders work out of a position this way. Sometimes that is the worst thing that could have happened because then they get used to it, then they get hammered. I am picking on you Don, I just thing this is an example of what a lucky, very lucky trader can get away with, but something that most traders should always keep from doing. Regards, Steve@yamner.com