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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Paullie who wrote (8023)	6/5/1999 9:48:00 PM
From: Rande Is	Respond to of 57584

Paullie, playing a position trade as a momentum trade is sort of the best of all worlds. You are already intending on holding long, and are confident in the future, so getting "stuck" with shares is not the worse thing that could happen. I usually buy some "extra" shares to trade into a momentum play. Also, one of our first sells from our original position occurs at the end of the first really strong momentum. In other words, we buy 3000 at say 3 . . then at 7 it gets a BIG momentum to take it to 9. . . .if we haven't already sold our original position. . .by selling 1000 at 9. . .we are holding 2000 FREE shares. . . . risk free to our original capital. Now that is what I call a good trade. So only those with momentum experience should be playing as a momo. . . and only with a very small position. . . the play is a position trade. . not a momo. . . but ADDING a momo play CAN be a nice way to add some cash. . . HOWEVER> . . DO NOT EVER TURN YOUR MOMO INTO A POSITION. If your momo is not working, stop out like you would ANY momo. . .holding beyond the momentum is asking for losses. . .the risk is dramatically increased. . and most importantly. . .the fun is removed. When position trading stops being fun, it is time to buy a mutual fund and let someone else do the sweating. Rande Is