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To: Richard Estes who wrote (2336)	1/11/1998 6:25:00 PM
From: steve goldman	Respond to of 12617

Tax strategies...I would have to disagree a bit. Clearly if you can earn more in profits than in tax savings, don't sell. That goes without saying. But one is a sure thing, the other is a maybe. You know you will be able to reduce gains with realized losses...you don't know you stock will pop after the first of the year. You can always sell one stock and buy a competitor. ie...sell Seg and buy WDC. there is no reason to pay the government hard earned cash from realized gains when you have losses that you can take. You can't just look at the 30% savings in realized losses vs. 70% gains, you need to look athe compounded effect of the opportunity cost you lose in the money the government keeps in taxes. I don't disgree entirely, but tax strategies are important. They are so unique to each trader, that it is impossible to come to generalization. The only generalization that could prudently be said is "if you can make more NET by holding the position, hold it". Robert, it would not be great if SI had a spell checker. It would make the procss too time consuming. Part of having a great forum like this is that it is something that can be done quickly. If I had to check my spelling, i could never post half the messages that I do. I simply assume that most of us are reasonably intelligent and can get to the meaning of the question. The day we decide to make abook of all this, we can all chip in and hire a proof reader. Have a great weekend...Half time of the 49's game is over. jerry rice's decision to come back reminds of the strategy of invesitng 400% into two stocks. You are either a hero or your career is over. I love Jerry rice...but he made a bad choice...the team was doing great and still is doing great without him. He is done forever. Regards steve@yamner.com

To: Richard Estes who wrote (2336)	1/12/1998 9:23:00 AM
From: TFF	Read Replies (1) \| Respond to of 12617

Richard: The point is that you do not have the option to excercise a risk management strategy which is line with the returns you are trying to achieve. Let's assume you typically have a stop loss limit order in @ - 5%. If you hold a 1000 share of INTC long overnight, and it gaps down 10 bucks, you do not have the option to excercise stop lose order any where close to -5%. You are now stuck with a HUGE paper lose and a decision to: 1) Cut your loses and run. 2) WAIT and WISH for a rebound during the day at which point you may limit your lose. 3) WAIT and WISH for a rebound in the next few days at which point you may limit your lose. ALL 3 options leave the Day Trader with an unwelcomed state of mind. He/She is shaken and hopefully not stirred. Most likely unable to trade properly until at best the trade has been covered, at worst for a few days or longer. Assume the best, and the stock gaps up. The Day Trader is seduced to hold overnight more frequently and become comfortable with the added risk. IMHO the Day Trader becomes a LOSER in either case.