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Strategies & Market Trends : The Final Frontier - Online Remote Trading -- Ignore unavailable to you. Want to Upgrade?


To: TraderAlan who wrote (7373)5/25/1999 11:09:00 PM
From: Richard Estes  Read Replies (1) | Respond to of 12617
 
Only investors will really be hurt. traders will be hurt only if they have not overcome the fear to sell or cover.

Some characteristics of those in danger:

They think of stock as a company, not a nameless Price/volume chart.

They think they know a few stocks backwards and forward. Usually "name" stocks.

They buy and sell on rumor, story, product, or anything coming from media.

They are cocky and picture they are experts instead of success due to bull market.

And the good old investor that believes in quality and value.

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But this bull is not dead, they try to kill every 6 months or so and it keeps on running. Its demise has been predicted by all. Reminds me of my mother who predicted a depression was just around the corner for over 50 years. She has passed on, but one day she might be right, too bad she won't see it. When the big one comes, few will know, no matter how good you think you are.

Trader, do a scan and see how many stocks have doubled or more in last two weeks from low to high. Or how many have lost 30% from high to low. There is momentum in place, up and down.

Ability to go short is the full package. But the downside is held to 100%, the upside has no limit. Those that buy and sell for points or less don't seem to care. a stock going from $25 to $50 is 100%; a stock going from $50 to $25 is 50%. the capital cost to enter these trade are double, on short side. Percents do count.