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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Goncharoff who wrote (3659)	6/12/1998 5:39:00 PM
From: LK2	Read Replies (1) \| Respond to of 9256

DanG Please clear your mind, then read your statement about a goal: >The statements don't clash if the goal is find stocks that will go up, and to buy them as close as possible to the time they begin going up.< I think the goal you describe could be used for both short-term and long-term investors. The goal you are describing is not exclusive to short-term or long-term. Normally, or at least the way I've usually seen it used, a short-term trader is interested in fast profits. This implies a shorter "average" holding period than a long-term investor's holding period. A long-term investor is looking for long-term profits, and is more willing to hold a position for a longer period of time. The difference is mainly a matter of emphasis. Trading usually implies faster portfolio turnover. Investing is supposed to be slower or less portfolio turnover. One area value players look at is bombed-out stocks. Value players are not usually considered traders. Traders usually avoid bombed-out stocks. This is just theory. In the real world, things aren't simple, or what you would expect--unless you have a good knowledge of Wall Street, finances, etc. I admit my knowledge of Wall Street is very weak. But I think you might be surprised at the portfolio turnover ratios of a lot of mutual funds that supposedly have a 'value' or investing bias. The portfolio turnover ratios are often extremely high (at least, they are high in my opinion). Where you do find low portfolio turnover ratios is in the index funds. ---------------- Actually, I don't know enough about Cramer to know whether he usually pushes buying bombed out stocks that appear dead (but that really aren't dead). The strategy would make sense, obviously, if you could identify the stocks that will move up. But what I find a little strange is that a trader would focus on or emphasize stocks that appear dead. Like I said before, these are stocks with lower volatility, and a trader is normally looking for stocks with a higher volatility (even though you could also argue that a trader is looking for a lot of other factors in addition to volatility). -------------------- I just wish I could explain things more clearly, and in a much shorter way. Regards, Larry