To: JACK R. SMITH JR. who wrote (6940 ) 8/10/1998 8:41:00 AM From: Richard Mazzarella Read Replies (1) | Respond to
Jack, <<I have just realized that they do not share my views.>> You should, we have discussed trading timing a number of times. Trading timing is relative and even your long term holding may be short term to others. The purpose of investing in stocks is to increase the investor's wealth. If one wants to just do "good works" they can give to charity. If the idea is to maximize wealth safely, invest in fixed income instruments. The other end of the investment spectrum are penny stocks. GPGI is a penny stock. Day traders tend to maintain a constant share price over the near term, a good thing. Someone is selling that stock to them. Is it the long term holders? If nobody comes in a buys low, the stock goes lower, love those guys on a declining price. Does it make sense to hold a stock when one has certain knowledge that it's going lower? Long term holders can't stand short term traders because deep down the long term holders know that someone else is making money, not them. Short, near, and long term shareholders are necessary for a good penny market, even legal shorts. A technique many use is to combine methods. Find companies where fundamentals show the stock undervalued and buy both a long term and short term position. Then one has the luxury of selling the short term for profit on a move up and still have stock for longer term investment to be sold at even higher price. As the price goes down again one can buy more stock than they had before. A study of GPGI price shows the merit of that technique. Don't be angry at people that are leveraging their investment, be angry for not investing in the education and time to realize the same.
