Replies to post #229545 on ERHC Energy Inc (ERHE)

[magicatlast]

Just to keep the thread intact, here's my deleted post without the supposed offending phrase:

"TOB, et al. I agree with your rational thinking about trading. As I have previously posted on this and other boards, my process has the same effect, but is much simpler.

Every morning when I open my portfolio, I make a conscious decision about each of the positions I hold. I ask myself one simple question: If I did not own this stock, would I buy it today at the current price? If the answer is no, then I sell. If yes, then I hold or possibly buy more. Except for possible tax consequences, my cost basis and time held are irrelevent. The stock is either a good investment(imo) going forward, or not, period."

Magic

[TOB]

Ok, my thoughts on your thoughts. :-)

magic and TOB, my last thoughts on the subject of trading...

By looking at a stock you own at any giving frequency and deciding to sell if you wouldn't not buy at that price, you may lock in more profits than I (an understatement, LOL!), but you also exonerate any and all behavior of corporate leadership and insure that there is no accountability whatsoever.

Here is where I believe you are going wrong; by owning shares, you do not have a remit to pass moral or legal judgement on the company whose shares you are trading. You are not the SEC, nor a regulatory body, and your trading is entirely unrelated to any imagined accountability. I’m afraid what you are doing is adding all sorts of moral imperatives to what is a simple business transaction, the buying and selling of shares.

Also, when does your obligation for “accountability” stop? Can you cash out at $5? $15? After 10 years? Never while the company is in operation? Your assertion makes no sense, unless you are an insider, which I assume no one here is.

Isn't that what created the entire global meltdown we just experienced... people just washing their hands of a problem and leaving it for someone else to worry about.

No, that is entirely an unrelated question, a fatuous accounting rules and buffoonery by the various regulators caused that meltdown. This has no bearing on our discussion.

If everyone did as you do we would be right back in a global meltdown. It seems that we are on that path though, because there are some real doosie problems being dumped on our children and grandchildren right now by this country.

Nope, see above, you are grasping at straws. If anything, buying and selling is very healthy for the markets and share prices. We would not see these ridiculous run-up bubbles and the ensuing sell-off panics if there was more profit taking and less wild, emotional trading.

"Screw the other guy as long as it doesn't affect me", seems to be the battle cry. I was raised better than that. I have decided I am going to live with exceo where right and wrong still have meaning.

Again, this tendency to put moral judgements on simple trading is not helpful, perhaps it makes you feel better emotionally, but it is not a sensible way to trade shares. No one gets screwed when you sell, the buyer wants to buy. Ditto when you buy, the buyer wants to sell.

Indeed, if the long term committed traders in ERHE took partial profits when the share price is accelerating into a bubble, those same traders would be happy to buy more when the price accelerates down, and they’d have the money to do so. If they just hold, they have only anger and frustration when the share price falls, but no money to help support the price.

My suggestion leads to a more stable share price, something lacking with ERHE, but, once volume increases, this is the smoothing result. A very healthy thing for ERHE and its long term investors as a more stable price is achieved.