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Strategies & Market Trends : Position Trading Forum -- Ignore unavailable to you. Want to Upgrade?

To: Glenn who wrote (6680)	11/12/1998 1:36:00 AM
From: Bogeey	Read Replies (1) \| Respond to of 7247

You know what??? I don't believe that anyone regularly posting on this thread espected Tim to hold anyone's hand through this play or any other. I think the problem here goes back to the fact that Tim can't have it both ways. Let's all be honest here. This thread had Tim's name on it, and is called a position trading forum. However, 90% or so of the stocks that are discussed on this thread are Tim's picks. Tim knows this. And if you look at these posts they are from people who are IN the stocks that Tim has put out there, and they are in it for a reason....Tim called it. Sure we all do our DD but the picks he puts out have nothing to do with fundamentals, they are based on speculation of future events, speculation of future events brought to the thread by Tim. Tim must know that all this is true. My point is this...If you are going to hype stocks to a group you know follows you and values your expertise, then you have to take some responsibility for that. If your going to hype a stock all day, and say things to keep people in the stock, then when your attitude changes, you should say that too. Had Tim come out and said, by the way, I am feeling a little nervous about things and am going to take profits, we wouldn't be in the turmoil we are in right now on this thread. Expressing a turnaround in his opinion of things is not hand holdiing or telling someone when to sell, it is the flip side of telling someone to consider buying. What would you all think if an analyst posted a strong buy recommendation this morning on NEWZ and then told you one hour later that he had sold all of his position. You would feel exactly like alot of people felt here today...a kind of betrayal. This thread has a history of rallying around Tim and his picks and when the leader did the opposite of what he told all of his followers to do, those people lost confidence and felt betrayed. This is really not meant to bash Tim at all, because I really like Tim alot, and believe he is very talented and I value his advice and expertise. I only post this hoping he and the rest of you would understand why the uproar took place today. As I said earlier, you can't have it both ways. I wish Tim the best of luck and will miss his input. BTW...I made a good chunk of change on NEWZ.

To: Glenn who wrote (6680)	11/12/1998 9:03:00 PM
From: Don Pueblo	Read Replies (8) \| Respond to of 7247

ALL TRADERS READ THIS PLEASE This is important. Today I got a call from a buddy of mine. I talk to him about twice a week. He's a position trader with a big account. He's really good at what he does, which is shorting. He's a professional, and he trades a professional account. Today, he decided to short a deal called AVCO. It was 2 bucks this morning at 9:30, and it ran to 10. Then it backed off to about 8 and ran up to 10, and backed off, and then ran to around 11. He shorted a whole bunch of it, but he wouldn't tell me how much. His usual positions in such a deal are around 4 or 5 thousand shares. The stock then took off this afternoon before the close. I was watching it when Joe Kernan mentioned it on CNBC, it was around 13 bucks. It went straight to 32. My budddy had to cover at the market close at 34. I hung around to see what DELL's numbers were, and I noticed after the close that the only offer out was 50 bucks. That's right, somebody was being forced to cover a short at 50 bucks. Let's look at my buddy's trade. I'll give him the benefit of the doubt (because he didn't tell me precisely) and say he was short 4000 shares at about 15, his habit is to short more shares when it goes the wrong way (not a good habit in this case). He covered at 34. He lost $76,000.00 Maybe more, since it was a cheap stock. Maybe a hundred grand. On one trade. Maybe somebody like him had to cover at 50 after the market closed. Get the picture. A trade you could do with 8 grand in equity in your account. Short 500 shares at 15, cover for 50, you could lose $17,500.00 on 500 shares of a 15 dollar stock; a loss of ten grand more than you had in the account yesterday. Fortunately for him, he had the money. Emphasise "had". If he didn't, the firm where he was trading would be forced to pay the balance. What's the point? I posted some trading rules about a week ago. Number one was getting out of a bad trade. Never take more than a point against you, and NEVER NEVER NEVER average up or down on a losing position. Remember you read this, because the time will come when you are looking at the screen and the stock is going the wrong direction. Your first thought is "It will come back." Then, it goes real bad, and you will think, "I'm screwed, I have to wait for it to come back". Most of the time, it will, if you wait. But it only takes one time to go the wrong way, real bad, past the point where you thought you couldn't cover. Then it gets into the Twilight Zone, and you are really really really screwed. Only one time. You're out of business. Please remember this. It is the number one rule. Don't sit and watch it bankrupt you. Don't let a trade go against you. Take the loss and live to fight another day. (Me? I was afraid to jump on it at 14 when Joe Kernan mentioned it.)