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Strategies & Market Trends : Trading For A Living -- Ignore unavailable to you. Want to Upgrade?

To: Adelantado who wrote (91)	5/22/1998 7:15:00 AM
From: Big Dog	Respond to of 1729

Boy, I have made some of my biggest and fastest money in bankrupt companies. BIG DOG

To: Adelantado who wrote (91)	5/22/1998 12:05:00 PM
From: R Stevens	Read Replies (1) \| Respond to of 1729

Joe, Your post #91 reminds me of the importance of earnings, growth of the company, etc...(also called fundamentals) Good point. I have also found that the momentum of the earnings growth is important. I have seen companies that report great earnings growth like Dell drop after the announcement because the earnings are not growing as fast as they were in earlier quarters. Also very important as I said in post #1 is the trend of the general market. If you are a long term investor then, fundamentals are more important. If you are on a shorter term basis, then you must also be highly tuned to the general market trend, and the stock's historical price movements, and you need to get familiar with how stock prices move in different situations. For example: When Dell's price did not move up strongly the morning after it released earnings, that was the first indicator to me that it might go down. Also right after the Fed published the new's about no interest rate hike, the market went down. This was very good news, market goes down, not good. Both Dell and the market looked like they had reached a near term high in their price charts. So based on things going down when I thought they should go up, and the current chart highs, I concluded that they were going to go down and I took on a position that would allow me to make money as the price dropped. I took the position because I have seen that happen before! Price is high, goes down on great news,.....price starts to fall. I got burned the first time because I thought the price would go up on the good news. The next time I missed out because I was uncertain after my previous loss. This time I had conviction because I had seen it before several times. Learning takes time and experience and patience. RS