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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: MaryinRed who wrote (96163)	2/8/1999 8:44:00 PM
From: Voltaire	Respond to of 176387

Mary, Let me commend you for at least being innovative. Although I always have money or sources of money at all times for pullbacks and manipulation, I have never considered being fully invested a sin. The real sin come from some of the CRAP people are full invested in. I must say though that your strategy has a certain appeal. Voltaire

To: MaryinRed who wrote (96163)	2/8/1999 8:56:00 PM
From: Lockeon	Respond to of 176387

Mary - RE. - Your Plan... A colleague of mine tried something similar just over the last 2 weeks. I had finally persuaded him to buy Dell, and he decided on a somewhat similar plan to yours. So, after 2 days of $4 price increases to the $100 level, he sold 20% of Dell against my strenuous objections (but I'm not as persuasive as Kemble - <G>), and the stock promptly went up to 108. Well, he waited for the pull back and got it the next day when he bought in again at 107. The stock promptly fell to 100, and now of course it is up at 104, and he's kicking himself (with me providing a few I Told You Sos to add to the blighter's discomfort - <BG> - perhaps he'll learn), since obviously he'd have been better off just holding the dashed stock.... Don't know if that helps.....<G> Have a GREAT evening...

To: MaryinRed who wrote (96163)	2/9/1999 11:40:00 AM
From: Craig Lieberman	Read Replies (1) \| Respond to of 176387

Mary, You should be able to back-test your theory using closing prices from a range of days in the past (1 month, 3 months, 1 year). Your challenge is deciding on a regiment for when to buy back in. Dell shares are fairly volatile. If you take for example yesterday we ranged from 98+ to 105+. The stock is a random walk. When it is down a buck, do you buy back in, or when it is down 5 bucks. The other question is limiting your losses on the upside.. After you sell and you find yourself sitting in cash with the stock up $2-3, what is your strategy for getting back in. For example if you sold at the top of around 73 in mid November last year, when would you buy back in? If you waited too long for another big correction like in September, you might miss the boat and be on rocket ride from December to Jan. I have rarely made headway when trying this strategy. I find myself selling low and buying high. look at this chart: iqc.com We all would have liked to dump our entire position in late september only to pick it back up at the low in early October. However, there were various up ticks in the stock on the whole way down. Also, on the way up, there are many downticks. From a life impact persepective, you will have to decide how closely you care to follow the stock. Is daily pricing enough for you or are you willing to watch it constantly. I find that when I have a trading position in play, there is little else I can do effectively. Market makers are in the business of getting us to panic and sell our shares at exactly the wrong times. Do you have a calm disposition and a strong internal compass? (Being long Dell is a good sign). Finally, you have to consider the tax consequences. Buy and hold defers the taxes on gains. Your strategy would cost you in taxes every year on at least 10% of your gains which would act as a drag on your net worth. If you are in an IRA, this consideration is moot. Just some perspective from someone who has tried without much luck. Craig