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Guys, don't get crazy playing a counter trend bounce...smallish positions only...big positions are for early part of long term trend changes...like in mid to late 09'.
The biggest losses I have ever taken were in 2000-1 when many high flyers like fiber optics were slashed for 50% and I thought they were done going down. only to go down 80-90%.
I have seen many many mono sectors such as internet, banks, fiber optics, biotech, solar, nanotechnology, rare earth elements, 3D.
Its the same game over and over but different players and sectors.
Gotta find the momo sector early and ride them up and get out at the right time and don't get greedy...once you leave the position and sector don't ever go back.
When a high flying sector blows up its rare that any of those companies ever reach their all time highs ever again...stocks like AAPL, GOOG and AMZN can buck the trend but most cannot.
We are in the 7th inning earliest and 9th inning latest in this game, don't lose sight of this...the ones that think the game isn't cyclical or that we are in the 3rd inning are going to get their faced ripped off within the year.
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