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<p>S&P 500 wrote:
<blockquote TYPE=CITE> <font face="Comic Sans MS"><font color="#000000"><font size=-1>Hey</font></font></font><font face="Comic Sans MS"><font color="#000000"><font size=-1>Has
anybody ever heard of two option strategies called</font></font></font>
<p><font face="Comic Sans MS"><font color="#000000"><font size=+1>"2-Day
Swing" or "Option 40 in 4"</font></font></font><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<p><font color="#000000">The option 40 in 4 might be referring to a strategy
where the goal is 40% return in 4 days or less. The 2 day swing
might be just what it states. I forget who was pushing the
40 in 4 but I remember getting something in the mail about that.</font><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<p><font face="Comic Sans MS"><font color="#000000"><font size=+1>ramon</font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<br><font face="Comic Sans MS"><font color="#000000"><font size=+1></font></font></font>
<p><font face="Comic Sans MS"><font color="#000000"><font size=+1>Any help
would be great.</font></font></font>
<p><font face=""><font color="#000000"><font size=+2>Rob</font></font></font></blockquote>
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</x-html>From ???@??? Thu Feb 04 11:51:01 1999
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Date: Thu, 4 Feb 1999 10:51:54 -0800
Reply-To: szilassy@xxxxxxx
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From: "Szilassy" <szilassy@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Hello, Who I am
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John, I look at longer-term data too. Never indicated that I do not. What
I NEVER do though, is study P/Es, receivables turnover, sequential inventory
growth, etc., etc. if my hold will be anywhere from 3 minutes to 3 days. I
do not believe this kind of information has the slightest impact on
short-term price movements; therefore, its use as a basis for short-term
trading decisions (or even as a filter in the selection process) cannot
possibly be of any benefit, IN MY OPINION. The reason I can state this is
that I used to operate the way Len does. I would go so far as to look at
fundamentals and try to justify trades which had gone against me by
believing my observations about the stock's being" undervalued" were still
valid. I also believed it was safe to wait out a downturn in a long
position, because the market would ultimately "realize" that my conclusion
was correct. The danger implicit in this kind of approach is that trading
capital is tied up indefinitely while other opportunities sail by, on a
day-to-day basis... and there is no guarantee that the market will ever
provide justification for your entry decision. As an example, look at all
those companies with strong fundamentals which provided well-substantiated
denials of allegations about accounting irregularities. Look at REXI's
chart since the time the allegations were made AND successfully refuted by
management in late August.
The only philosophy which can consistently work in short-term trading is
"trade what you see, not what you think". The proof lies in situations like
AMZN. I have never traded AMZN, but not because I believe the stock isn't
worth the paper it's printed on (which is actually true, from a rational
investor's standpoint). I do not trade it because since I started trading
it has been too volatile and too expensive for my comfort level. Again,
fundamentals have no consistent and meaningful bearing on the short-term
price movements. If anyone can refute this statement with examples, it
would make very interesting reading for us all! Bring it on...
Best regards, Paul Szilassy
-----Original Message-----
From: John Rastutis <Johnonetoo@xxxxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Thursday, February 04, 1999 10:16 AM
Subject: Re: Hello, Who I am
>Len...
>
>First and foremost, I use TA and price as my trading tool. At times my
>holding period may only be a couple of days but why shouldn't I look at
>the longer term data? My success has increased generally every time I
>took advantage of any piece of correlating information.
>
>Why don't traders use any information that can even in the slightest way
>increase their odds? One needs every edge they can get. If I
>find(through research and testing) that a CEO eats a tuna fish sandwich
>at lunch and the next day his company's stock gaps up, I'll use it! I
>don't want to "handicap" myself by ignoring data. It's like going out
>into a forest that is infested with savage bears armed with a fly
>swatter. Isn't there a saying about this? Something like "Armed for
>bear"? Anyway, what's wrong with trading the price but having the
>research behind the choice of issue. You're right on when you said it
>can "minimize downside risk".
>
>Regards... John
>
>Len Olson wrote:
>>
>> Dear Paul,
>>
>> The reason I concentrate on fundamentals is to minimize downsize risk.
>> If the company is solid financially AND makes timely SEC reports, to me
>> it means that that it is a real company that is either making money or
>> is in a position to weather a storm.
>
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