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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: DaveMG who wrote (2369)6/1/1999 12:01:00 PM
From: mauser96  Read Replies (2) | Respond to of 54805
 
Your observation about one big winner making up for lots of small losers is certainly correct, but there is one caveat. Sometimes the stock market prices are discontinuous- on sufficiently bad news a stock can go directly from 40 to 20, with no way to sell between the two prices. This is one of the prime reasons for diversification at least between companies. It would be rare for a sector to show this kind of price action.