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Found the following article interesting,..thought others might also.
In my opinion,..the bottomline,..skepticism and fear are still high here.
Despite the move up off late May lows. Such dis-belief (fear) combined
with sidelined cash says potential exists for near-term sharp move higher.
Very constructive from a contrary perspecitve. Regards, Jim P.
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Smarter Money: Tempted by Trading Again? Not So Fast!
By James J. Cramer 06/16/00 11:41 AM ET
Many of you are still reeling from the charnel house that was the peak in the
Nasdaq earlier this year. You have seen the market stabilize and you are
thinking, "Hmmm, maybe I can have another go at it."
You are thinking that you tasted some quick profits and then you got hurt,
but things seems to have settled down and maybe it is worth trying trading
again. You're thinking this way because that darkened, out-of-the-corner
profession -- the kind where you bought and sold a couple of times a day --
made you more than you earned in weeks, or even months, at your real job. For
some, trading became an obsession.
Oh, don't you think I know it? Me, who has stood at payphones while ferries
pulled away with my family onboard, as I tried frantically to book a July IBM
(IBM:NYSE - news) call gain 12 years ago? Me, who got kicked out of class at
Harvard because I wouldn't stop charting stocks? I know the obsession. And I
knew it during the days when commissions killed profits and the Net was just
a gleam in Al Gore's eye.
So, it is with sober reflection that I remind you that one of the reasons why
the market has calmed down is that people aren't doing that stuff anymore. It
got too hard and people lost too much money.
Another reason it has calmed down is because the losses were so staggering
that consumer spending has dropped off a cliff. We are not faced with the
prospects of a hard landing from a nation that suddenly feels a lot poorer
than it did on March 10.
Maybe you could be the one to wade back in. But I think the prudent course is
to wait. To keep that current job and to remember that trading can be fun and
easy or it can be brutal and shocking and disappointing. Long before I had
diary entries on the Web I would get up at 2 a.m. and ask, "How could I have
done that in Maxtor (MXTR:Nasdaq - news), how could I have lost all of that
money?" Or, "What was I thinking with those BKX calls?" Or, "Of course, there
was never to be an American Brands takeover, but how can I ever look myself
in the mirror again for speculating like that?" Hundreds of notes to myself
in entries kept by hand.
And I'm good at this game.
My words aren't enough, because in the end I was left standing when the angel
of losses came by the Nasdaq at 5000.
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