Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (15177)	2/5/1999 8:20:00 PM
From: MileHigh	Respond to of 93625

mind, Dollar Cost Averaging, that's all. You buy more shares at the lows and less at the highs. Your returns will be less than someone who successfully picks the bottom. Neither one is right or wrong... MH

To: RetiredNow who wrote (15177)	2/5/1999 8:34:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 93625

OTOT I am reading Extraordinary Popular Delusions and the Madness of Crowds, by Charles MacKay. If the thread does not mind, I will post a few quotes for asides and general humor. The real reason that everyone isn't getting rich, according to this school of thought, is psychological. People deviate from their trading disciplines because they surrender to emotion, probably as the result of some childhood trauma.

To: RetiredNow who wrote (15177)	2/6/1999 10:10:00 AM
From: Zeev Hed	Respond to of 93625

mindmeld, if you have "infinite resources" dollar averaging sounds good (particularly in sound companies like CSCO and RMBS), but with limited resources and in less then sound companies, this technique tends to concentrate losers in a portofolio. A better technique, IMHO is to average up when you have identified a winner and it is in an uptrend, this way you tend to concentrate winners in the portofolio. I believe this one reason the S&P index funds are doing in general much better then specialized funds, the S&P group is continuously updated with "winning companies" (otherwise they would not make it to the list). In fairness to the "special funds, however, it helps the S&P index funds that a lot of liquidity is directed their way as well. Zeev