Not all of us are suited to day trading

The Ticker

June 04, 1999|By Julius Westheimer

IF YOU are considering jumping into day trading, Alpesh Patel, a day trader himself, suggests that you first answer these questions: Can you spend three hours a day evaluating data to trade effectively?

Can you afford to commit $5,000 to open an account?

Do you have the temperament to engage in something so volatile?

"Even successful day traders lose money in bad markets, so only try your hand at day trading if you can tolerate high risk and stress," Patel advises.


"Crossing of 10,000 by the Dow average was important, not because one index reached a big, fat round number, but because stocks climbed so much recently -- and so much of the advance was in a tiny number of stocks -- mostly large growth issues," notes Bradlee Perry of David L. Babson & Co. Inc.

"Examples are Cisco Systems Inc., Lucent Technology Inc., Microsoft Corp., Pfizer Inc., Schering Plough Corp. and General Electric. Co."

"When a consensus forms that one style is best, investment bankers create enough new securities to make sure it disappoints." (Kenneth Fisher in Forbes)

"If giant retailers Sears and Penney can't cut it, even in this great economy, it's time to sell your bond positions." (Marilyn Cohen, investment adviser)

"At the heart of the recent hi-tech sell-off is a well-deserved correction in the old leaders. It's just a safety valve, deflating explosive pressures from this overdone sector." (Cabot Market Letter)

Pub Date: 6/04/99

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