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

To: Les H who wrote (14179)	5/17/1999 9:30:00 AM
From: Moominoid	Respond to of 99985

5 day prediction for SP500 was 1370 but no chart too...

To: Les H who wrote (14179)	5/17/1999 12:45:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

The feelings of regret, envy, or plain greed can lead to impulsive and potentially dangerous moves. Marjorie Fox, a financial planner in Falls Church, Va., recently found out that one couple, both doctors, was ignoring her advice and selling all but one of the mutual funds in their diversified portfolio. She knew the married physicians were frustrated that their holdings lagged behind the S&P index. Some of their funds were even down. She had explained to them over and over that diversification is key for the long haul–to no avail. Last month, the couple plowed 80 percent of their portfolio into three technology stocks–America Online, Dell Computer, and Yahoo!--that have seen their values skyrocket in the past few years. "This is a perfect example of selling low and buying high," says Fox, who notes the three stocks dropped in value in April. She worries about the couple's financial future. "They were looking in their rearview mirror at what these stocks had done," she laments. Fox's clients may wise up, but the gambling continues. Perhaps the most extreme example of this casino mentality is the rise of day trading, that high-paced, frenetic form of online investing where profits are made betting large amounts of money on small changes in price. Securities officials say too many financially unsophisticated people are being lured into trading, believing it's a no-brainer. "The day-trading firms are welcoming every Tom, Dick, and Harry–and Sally–that walks in the door," says Denise Voigt Crawford, Texas's securities commissioner. It's already producing tragic financial consequences. "We have instances in Texas where people have lost their homes and their entire retirement," adds Crawford. usnews.com