To: Apex who wrote (248 ) 6/27/1998 10:11:00 AM From: Savant Read Replies (2) | Respond to
RE:248..I've got a better one than that. I was trading the channel on CCI last year, with good success. I thought I would share an idea with a friend of mine.He was sitting on $250K from an employee stock sale. So I told him to pick some up at $120, (I suggested 1000 shrs. it is a quality co.). He had his wife do it. I had them set up with an Etrade acct. so it was only $20 a trade. A week later, I called up because it was at $130 to tell her to make the trade and sell. Imagine my surprise when I asked how many shares she purchased.....10....I said...10? yep, 10...I said why only 10, do you realize how much that cost? She said only $20, I then had to explain how much per share that was, She was surprised when it turned into $2.00 per share each way. IE $4.00/shr or $40 total, netting out $60.At that point she decided she didn't want to be a trader, okay I'm with that, trading is highly overrated for most folks. So she didn't sell. Next thing CCI went back down to $110. Nervousness set in. Bounced back up to $130 and before asking, she sold. I found out, and asked why she sold, the next leg would be higher, and anyway thought she didn't want to be a trader. Well, she decided that was what I wanted her to do. Ouch. It went to $140. later $180+..In the meantime all that cash is still sitting there, through today. Moral of both stories, figure the amount per share if you are going to trade and make it worth your while.also decide if you are going to be an investor or trader, and stick with it.Also keeping that much cash around with many quality companies or funds around is wasting money and barely keeping up with inflation. Some cash is always good, for emergencies or pull backs, but keep that money working. Just my opinion of course.
