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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (1098)	6/8/1998 2:52:00 PM
From: Susan Saline	Respond to of 1720

>>>> [ One Stock, One Basket ] >>>>Is anybody a proponent of the One Basket Theory? Put all your eggs in one basket...and watch that basket carefully. I would love to do that...but I have too many broken eggs to get rid of first <ggg> I did lighten up half my load of GW today, oils are still weak.... only half sold....then it dt'ed...now I'll have to pay another commission another day, if the rest does not sell. by watching carefully...do u mean selling it at the fisrt sign of a down tic? sue ps..hope you do not mind, I shared your read with some other SI friends.... exchange2000.com

To: HeyRainier who wrote (1098)	6/8/1998 3:00:00 PM
From: Grantcw	Respond to of 1720

[ One Stock, One Basket ] Rainier, As I've said in an earlier post, I've tried every method in the book of investing including this one. Have you ever heard of FIBR (Osicom Technologies)? I was taken by their story back in the last quarter of 1997. I couldn't find any other stocks I liked and I thought Osicom was fairly valued at 40 while trading at 2, so I just loaded up 90% of my portfolio. I think I held my portfolio that way for about 3 months! You can't imagine how many times I would look up real time quotes during the day! Luckily, the stock bounced on hype and I sold much of my stock for a double. I'm still absolutely amazed that I haven't lost all of my money with the high-risk investment techniques I tried. Knowing what I know now, I would not have invested in FIBR at all, especially in the midst of a long-term downtrend. If anyone is thinking of trying this method, make sure you have amazing faith in the stock to withstand the bumps and bruises along the way. Otherwise, you WILL sell a good portion of your position at a loss. I almost did... Grant

To: HeyRainier who wrote (1098)	6/8/1998 3:10:00 PM
From: ftth	Read Replies (3) \| Respond to of 1720

No, not me anyway. Requires absolute certainty in one's analysis, which we all know isn't possible to that level of confidence. Another way to put it is it requires certainty in knowing how the MARKET is going to react to one's analysis. Any stock can tank after an overnight news release. ANY stock. In such a case, it doesn't matter how closely you watch it. The plunge will be built into the first available selling price. I guess you could say that such a bet is beyond my risk threshold. However, I have known people who buy and sell a GROUP of carefully selected stocks as a basket. In other words, ignore the individual performance, and buy and sell the entire basket "simultaneously," based on the group performance. It's an interesting concept, and would help remove or reduce emotional trades on the pieces of the basket. May try it some day, but haven't yet. dh

To: HeyRainier who wrote (1098)	6/8/1998 3:12:00 PM
From: Greg Butcher	Read Replies (2) \| Respond to of 1720

Re:'Is anybody a proponent of the One Basket Theory? " Very interesting question.....I have been known to do such trading.. many sleepless nights can be in your future if things don't move your way.... Can I inquire why you ask? Greg

To: HeyRainier who wrote (1098)	6/8/1998 7:14:00 PM
From: Lee Lichterman III	Respond to of 1720

I will do the all eggs in one basket on occasion but only short term. I have had great success but as others pointed out, they are nervous times. I only do it when I already know the company, I track many, and a general market induced throw the baby with the bath water event happens. I sold off my portfolio a few months ago and bought all SUNW when there was a PC sector sell off as CPQ warned about their inventory problem. SUNW dropped from the mid 40s to the low 30's only to start the next day around 42. I quickly unloaded and went back to business as usual. The same with many others, I usually won't hold more than a month or two though since if the stock hasn't rebounded by then, the indication is that there may be a real problem or the sector is just out of favor and no one is watching any more.