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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Land Shark who wrote (2554)	8/17/1998 7:46:00 PM
From: HairBall	Read Replies (1) \| Respond to of 8307

yields: Thanks for the support, but I was really taking a stance against averaging down, in general on any stock. I was not actually suggesting to sell or for that matter to buy EGGS. Before anyone takes a position in a stock, (long or short) they should have a mental stop loss and a profit point. If the stock moves against your stop loss, take it. In most cases it is always better to take a loss earlier rather than later. If you get out of a stock on the way down, for instance, rather than average down by buying additional stock at a lower price. You actually will have more money to buy in at the lower price. If the stock continues to go down, you have limited you loss by getting out at your stop. Of course, the risk is that the stock will take off and you will miss it. That's the hook that keeps investors in after they start loosing money in a stock. To many new investors, have to learn this lesson the hard way, I did. Holding on to long to a stock going against you hoping for a rebound is playing against the percentages. Have a game plan before you invest and play it. BWDIK Regards, LG

To: Land Shark who wrote (2554)	8/17/1998 7:53:00 PM
From: Kip518	Read Replies (4) \| Respond to of 8307

yields, I think you missed LG's point. He was suggesting to fman to sell because he was in a losing position, not because he thought EGGS was going down (I don't know what LG thinks about that). His advice was don't stick with a loser waiting for it to come back to your price. You can get hurt a lot more in the interim and it may never come back. Better to sell at a small loss and buy again when the bottom appears to have been reached. (aside to fman, earlier you had a question about the tax consequences of a wash sale as LG is suggesting. the answer is easy. if you buy the stock back within 30 calendar days of the sale at a loss. you simply add the amount of the loss to the basis of your purchase. therefore your new purchase starts with a higher basis). Now, regarding EGGS, IMO it has finished building its base for a run up. The test did not make it to 10 7/8, but close enough. Could go all the way to 15, if tomorrow is a super strong day in the markets, as I expect (relief rally because we all just love Clinton so & now that he's confessed his sins we want to show him how much by throwing all our money at overpriced stocks -- my prediction -- if he shows tears tonight we'll probably have 200 points up tomorrow, if both he and the wife are crying probably 300 points & if he, the wife & the daughter are all crying -- 500 points! [I'm assuming the dog will be kept out of the picture caused that would look too much like Nixon's checkers speech -- but if I'm wrong & the dog is there crying too, then DOW 10,000!!] Kip BTW, where is fman anyway? Did he take LG's advice, sell & abandon the thread?