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To: JOEY who wrote (35242)	5/1/1999 10:35:00 PM
From: Howard C.	Respond to of 43774

It's also a very Responsible approach (what a concept). People with less than than shouldn't be risking their money in day trading. IMO.

To: JOEY who wrote (35242)	5/2/1999 12:41:00 AM
From: ISOMAN	Respond to of 43774

If you don't have at least $50,000 to trade with ($100,000 is more realistic) then Daytrading is not a wise career. You can start with less, however.... What will happen is that you will have to use your entire bankroll, and everytime you di down 10% you will be inclined to sell to cut your loss. If you have $100,000 you can invest 25 grand in...oh lets say AOL at $150 Then, should it drop To $100 you can buy yet anothe 25 grand. And at the outside chance it drops to say $70 you can put in another $25,000 Eventually it may go back to $125 Now... If you only had $25000....You would have bought 165 shares. If it dropped all the way down to $70 you would either have to be able to predict that it would drop more than 50% and pull out at the rigght time, or... As is often the case, you would pull out around $100 and not buy back in. Now, out hero who waited until he had $100,000 Bought 165 shares at $150 Bought 250 shares at $100 Bought 357 shares at $70 for an average price of $97.15 Let's then presume that it went back to $125 772 shares X $125 =96,500 or a gain of $21,500 or 28.6% gain. Our lump some trader, had he bought at $150 and held until $125 would be down $4250 -------------------------------------------------------------- The above is for illustration purposes only. The first trader would be a nail biter, while the second would keep his wits about him until the stock hit about $25 ------------------------------------------------------------- People will complain that Averaging down has no guarantee that the price will go back up. To this I say...there are no guarantees that any stock will behave the way you want it to. Daytrading is not for the faint of heart, or those with limited brain function.