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Technology Stocks : PSFT - 1997 Outlook [closed thread] -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (810)	1/28/1998 6:57:00 PM
From: Satyr	Read Replies (1) \| Respond to of 940

I'm sure your right but I think everyone even traders manage the risk they handle. When ever I initiate a trade I am looking for at least a 3 to 1 Profit versus Loss ratio. I know using technical analysis that I will be wrong far more often than a buy and hold type of Investor. The risk reward ratio makes up for it. It also has the benefit of having your money working for you most of the time even when the market is not trending. Also we can make money in a bear market which most Investors cannot do. TA is far from perfect but if you take the time to learn how to interpret it you may be surprised by the results. As far as statistically verefiable studies go I would think the Brokerage statements of the thousands of sucessful traders would be enough.

To: Chuzzlewit who wrote (810)	1/28/1998 7:17:00 PM
From: Melissa McAuliffe	Respond to of 940

Paul, Some people might be both..i.e. traders and investors. Your tax example is a very real issue to consider. I have been an investor in PSFT and I have been a trader in the calls that I have either written or bought. I haven't done any calculations to determine how much I might have made had I simply traded this stock but if Satyr says he was up 25 points I won't contest that. So I think that if one is going to trade he or she needs to believe that the overall gain after taxes is greater on trading. In his case, it sounds like it may have been. Several months ago I was reading one of Cramer's columns on the street.com and he said he is constantly asked whether he is a trader or an investor. His answer.."I am an opportunist". For some reason that comment has stuck with me to this day. I can only speak for myself but my goal is to make as much money as I can in the shortest time period possible. Personally I am both depending on the stock. However, I can see where there is a place for both strategies. The only difference is that if you are trading it takes alot more of your time and isn't something you can easily do in your sparetime. Melissa