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

To: Richard Estes who wrote (2416)	1/14/1998 10:00:00 AM
From: steve goldman	Read Replies (1) \| Respond to of 12617

Richard... My point about my firm and the percentages is the following: 90% of my clients are long term investors, those that buy/sell stocks NOT ON A DAY TO DAY, week to week basis. These are people that have bought the IBM, WLA, MRk, PFE's etc. and as I have stated, thisis where the real money has been made, relative to risk. Only 10% of my firm's business comes from more active traders, day traders, swing traders, brokers atother firms, active funds, etc. That is what I meanth, not that 90% of my firm's traders take them home. I use the word discipline because it is critical. I have long term investments, position investments and do a good amount of short term trading. Lets say I had a 200,000 account. I might be considered prudent DAY TRADING to buy 1000 INTC and 1000 DELL and 1000 AMAT at one time and trade them for an hour or so, whatever time frame during the day that is successful for you. BUT as a swing trader, it is totally imprudent to buy this much of these stocks since position trading usually involves taking stocks home for a period of time,,buying networkers when they are down and selling them a few weeks later when they recover etc. I have never really set a fixed % but in a position trade, I personally wouldn't let any one stock take more than 20 to 30% (and I thinkthat would be a lot) of my "position trading account". mutual funds, even the active ones, never have more than 5% of their assets in any one stock. The type of trading strategy you employ has certain disciplines which should be adhered to without fail. daytrading discipline is different than swing trading is different than long term investing. Regards, steve@yamner.com