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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: doniam who wrote (30047)	7/21/1998 10:43:00 AM
From: Knighty Tin	Respond to of 132070

Don, You've got the definitions down. The only thing I can tell you about is where they apply. With 90/10, the 10 pct. is for long option purchases, not for stocks, and it has to last an entire year. The thirds is just a way of dollar cost averaging into and out of a position. As a contrarian, I often buy too soon and sell too soon. By using thirds, I can buy part of a stock position when I think the issue is cheap, buy another third if it goes down further, and buy a last third if it hits rock bottom. Ditto for getting out. There is no real formula, as each situation is different. Most of my techniques are set up to conserve capital. On a short term basis, it is much easier to make money than it is to not lose money, and, since I live primarily off the returns from my investment portfolios, I cannot afford huge losses. Also, my personality is such that I love to speculate, but I always want a parachute handy. Hope this helps. You might want to read my piece, "Tech Stock Speculating While Wearing a Belt and Suspenders" in the Internet Financial Connection archives here on SI. That explains 90/10 in much more detail. MB MB