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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StockOperator who wrote (3212)	1/3/1999 9:44:00 AM
From: Debra Orlow	Read Replies (3) \| Respond to of 99985

StockOperator, I would just like to add a disclaimer, if I may, to your list of stocks to watch in January. I do appreciate your own disclaimer as to the necessity of the individual in doing his/her own DD when looking to trade/invest in any of these picks. We all pick our own poison, and these type of stocks might work for you, and you might become extremely wealthy by playing the game that you prefer, but it is my opinion that this particular game is very dangerous. For example, if you look at the average total amount of money which is traded each day in your picks, 2 of your picks average less than $100K TOTAL played per day (CMPD @ $97K, VISG @ 34K). The dangerous part depends on how much an individual chooses to use of his/her own money to play that pick. At $500, that's 0.5% of the total in CMPD, and 1.5% in VISG. At $1000, it becomes 1% of CMPD, and 3% of VISG. At $3000, 3% of CMPD, and 9% of VISG! At $10,000, 10% of CMPD, and 30% of VISG!!. I don't know what statistical dollar amount the overall average investor or trader using these days, but you get my point. And this is average volume, some days more, some days less. If one trade could have this much influence on the high/low/close for any given day, it is my opinion that any one individual is responsible for far too large of a percentage of any given day's move, and the technicals become a non-event. (I have used the lowest volume ones to make my point, but even the highest dollar one - POSO - at $330K/day, is too low in my book.) Again, I greatly appreciate your diclaimers when posting any of these picks, and I just wanted to talk about the added dangers when dealing with these babies. If you have figured out a way to override these largely skewed results, KUDOS! And if by the end of January, most of your picks have made you and others a decent percentage return, my hands will come together and applaud your insight. But, I'll pick another poison. One where the poison I partake in will be much more diluted, and much less deadly. Again, MY OPINION ONLY. Debra