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Technology Stocks : Applied Magnetics Corp -- Ignore unavailable to you. Want to Upgrade?

To: DanZ who wrote (11603)	3/25/1998 3:44:00 PM
From: James F. Hopkins	Respond to of 12298

Dan; I think your right short term..optoins are tough though.. the spread and the commissions..and the way the floor traders skew them if they see orders coming in.. At first I questioned my sell yesterday..but now glad I took the profit..while I seldom get out at the top, or catch the very bottom I did OK... ------------------------- I may try her again if she drops back below 11..I've been thinking this over some time..( my strategy ) no matter if it's APM or an other..but have not started it yet..but I am going to give it a test soon. ------------------------ Basicly..bottom fishing is tough..calling a top is tougher.. the prnciple being a stock can only fall to zero..but it can and many do over double..all things equall ..it's safer to catch a falling knife..than to grab ahold of a rocket.. all things equall catching bottoms will beat catching tops. As they are just opposite sides of a coin..but the top side has the potentual of going up more, than the bottom can fall even if it goes to zero..then the way the market works Time being the strongest force in the world is in the market too. ------------------------- Interest rates, and Time and all favor the conservative player who bottom fishes over the one who shorts a top..( say they can both pick equally as good ..the bottom player has an edge the top player don't. Two good ones in fact..less risk..and Time.. ------------------------- Now we all buy in this tech sector to sell at some point..as dividends sure wont do frazz for you here. There are more mergers and buy out's than companies that just go belly up..( 3rd edge ) But back to my Strategy..if I get in right..and go to sell.. why drop out..I must be selling because I think the stock is about to reverse ..( seldom if ever does one go flat for long )..so if I sell why don't I just short, heck it cost the same..and I can do it in a box..( no matter that the broker says he can't find me shares..he better never say I can't short my own..or I'll get a new broker )..in effect this takes me from long to short in one swoop..( no indecision ) one commission.. and I can go from short to long the same way..so instead of at first I look for "position" before profit..I get a good position like with the APM I had at 10.50..say it hits 12.50 I short..now even if it goes up my profit is locked in.. I got time to hold it..and do not need to sweat blood.. I can always cover..and then sell no matter how high it goes, and if I'm fast never lose any thing on that kind of short. ----------------- Then when I cover it..I must think it's going to reverse or why cover..so I go from short to long in one swoop..one commission..to piddle around in between tells me I'm not sure enough of this thing or my skill..I may as well find one I am sure enough of, or question and improve my skill. Jim PS The best lessons I think are learned by closely looking at were I was just lucky..and were I actually had talent.. I'd rather be lucky than smart..and if I don't give luck it's due..I'll wind up a fool.. "It's not a fool who does not know, a fool is he who knows what is not so Yesterdays call on my part to sell was about 50% luck.. had I shorted aginst the box..and even it gone up..I would have had my rear covered.. Yep I'm going to try that next time ..no need to just work one end of the price