wrote:
> effac...@hotmail.com at effac...@hotmail.com wrote on 3/17/07 7:18 PM:
>
> > Duh! As I said, no strategy works on a stock that goes to zero.
>
> That's ONE of the reasons I don't believe in "systems".......there are
> ALWAYS exceptions(which nobody mentions when they're hyping their foolproof
> method of getting rich)......
> If you notice, the favorite word of analysts is "IF"....
Nothing wrong with "systems" if they work. Many systems can and do
work and have been proven to work over time. Diversification is a
basic system (or strategy). You divide your money among various stocks
for insurance. The winners offset the losers. DCA is somewhat the
same, but you divide your money by time instead of securities. Both of
these insurance measures work on average.
Some systems are bad .. ie progressions are generally risky. So it
depends on the system. You just cannot blacklist every system because
of a few exceptions. Driving a car has a few bad exceptions to the
rule that it takes you from point a to b, but you probably still drive
since those nasty exceptions are rare.