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To: Robert Scott Diver who wrote (40642)	5/6/1998 5:52:00 PM
From: Chuzzlewit	Respond to of 176387

Robert, so what! Compare the 238% gain from the buy and hold strategy to the 109% garnered by trading. What I find truly incredible is that even without recourse to these frictional expenses you own chart shows that a buy and hold strategy would have turned a $26,000 investment into $87,875, but using the "magic" of TA that $26,000 becomes $54,340. That's some testimonial! But lets examine your tax advantaged account. Lets assume that you were trading 1000 shares of stock, and for the sake of argument lets forget splits. With 11 round trips the brokerage fees would be 22 x 30 = $660. In addition, Lets assume a spread of 1/8 so that a round trip costs an additional 1/4. On a thousand share transaction that amounts to $250. Multiply that by 11 and you get $2,750. So, we've shaved off $3,000 from the nominal return. So that $54,340 is reduced to $51,340. Furthermore, O'Neill's performance in his mutual fund has been dismal. In fact he was pretty much forced to pass management of his fund to others. He is possibly the worst paragon to site for this sort of investing. Check it out. You'll see I'm correct. TTFN, CTC