From: Olga Bourlin (fauxever@sprynet.com)
Date: Mon Jun 16 2003 - 01:46:33 MDT
From: "gts" <gts_2000@yahoo.com>
> Olga Bourlin wrote:
>
> [gts wrote:]
> >> For example I was there riding the saddle on "Black Monday", October
> >> 19, 1987, when the market dropped something like 12% in one day.
> >> People who got stopped out on that day now look like idiots. And the
> truth is
> >> that they really were idiots. Anyone who deviates from the buy and hold
> >> strategy is living in a pipe dream.
> >
> > They were not idiots - they were smart. There was nothing
> > preventing them from re-entering positions later...
>
> No, they were idiots. The market bottomed that day.
I didn't specify they should not have re-entered that day.
What about people who were invested in March 2000? Would your advice have
been to ride their $100+/share stocks down to the penny-stock ranks? If
not, at what point would you have advised your clients to put a stop to
their bleeding securities?
> You cannot argue that "People who failed to properly time the market at
time
> x but who might have timed it correctly later at time x+n would have beat
> the market, so therefore market-timing is a valid enterprise."
Huh? I wasn't talking about properly timing anything. I was talking about
minimizing one's risks with stops.
> But that is what you are arguing above.
I am? You took out the examples I gave you on DKWD and THC - that is what I
was giving you as examples to my argument that it was wise to use stops.
> The problem of beating the market is a much larger and more difficult
> problem than I think you currently imagine or understand.
I'll defer to your experience. But until I better understand what I
currently don't seem to understand ... I'll keep using those stops.
Olga
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