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expect, and evaluate the synergies. In general, it is a valid assumption to presume that similarly situated companies in the same field will react in unison to the impact of both good and bad news. |
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You will have no problem in developing and refining your own sector list. |
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Don't Confuse A Bull Market For Brains |
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One of my objections to the short-sale rule, which allows shorts only on an uptick on the bid side, is the bloating consequences that a long-term bias gives to the stock market. Pension funds, money managers, and investors have enormous amounts of capital and, as a rule, are buying the market's upside potential. Most people in the world have heard that stocks ''keep up with inflation" and are the so-called best long-term mechanism for investing in general. The result is general market price inflation because more money is chasing a limited supply of stocks. |
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Many of today's most successful portfolio managers have been reared in a raging bull market where stocks have steadily risen in price. These managers have never lived through a bear market where stock prices drop day after day until suicide seems like a viable and natural option. One of DAET's major appeals to traders is that they can make money in a down market as well as in an uptrend. |
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I have often been quoted as saying that most professional traders make most of their money in bear markets because stock price reversals are clear and dramatic. A flagrant bull market may only have a dozen great bear market days in a year, but one day's bear market profit can put a child through a year of college. As a DAET trader, you should take whatever gains the market is willing to give to you. Take all those incremental rises in the price of a stock. But also position yourself and prepare yourself to sell short if and when the market is dropping. |
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