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[RT] Re: OPT - averaging down on MSFT leaps



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I agree with you on one point for sure.  I would be very reluctant to 
scaletrade stocks.  Commodities, however, will never go to zero...almost 
guaranteed.  Certainly there are still problems: carrying costs, commodities 
that trade down to below multiyear lows, and stay there incredibly long 
periods of time, etc.  But overall, most of my nicest profits have come from 
scaletrading commodities.  Of course that doesn't keep me from still working 
on other approaches.

Larry

In a message dated 04/13/2000 11:53:16 AM Pacific Daylight Time, ist@xxxxxx 
writes:

> Scale trading makes one very bad assumption.  That what goes down must at 
one
>  time go back up.  That isn't always the case.  And if it goes up, it might 
> not go
>  up far enough to bail you out.  I am personally familiar with one party 
who 
> scale
>  traded into 250,000 shares of stock and is still down over $1,000,000.