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rheddle

11/29/06 10:36 AM

#3441 RE: unidev1 #3427

Unidev - I tend to disagree with you. People trading shares do not hurt the share price long term. Shares have to be traded in order for there to be the liquidity necessary for an appreciation in the share price.

What hurts the share price is the following:

- naked short selling of a security.
- companies increasing the OS and diluting the float.

There are other things that hurt the share price, but the above are two big ones.

Everybody has their own investment strategy, which is fine, but if you look at any chart for any stock, there are tops and bottoms.

Once the stock hits a top, it always goes down and the opposite is true once the share price hits bottom. The timing is difficult to get 100% right, but there are those out there that like to attempt it, myself included.

Think of it like a polo player riding a horse until it gets tired and then getting a fresh horse for the next bit of the game.

For stocks that I like, my strategy is to buy a 50% long position and then trade with the remaining 50%. That is the only way to avoid the only real pitfall of trading shares as opposed to holding them long; namely missing the big runs on news!

Best, R.