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>Example: I buy 1000 shares of JDSU at $130, the market drops drastically, I get frightened, and sell at $80, at a loss of $50,000.>

Just a question about your JDSU purchase. Obviously, one does a lot of research BEFORE making a 130k stock purchase. In all of your DD, what changed about JDSU's long term prospects when the stock fell to 80? The fall in price was not related to JDSU alone. Most of the sector was way down at the same time.

I notice JDSU's Friday closing price is close to your original buy price. The person who bought your panic induced sale of shares is up over 50% since then. I do not write this to put you on the spot. I think everyone can benefit from having a clear understanding of why they are buying a stock at its current price. If you are buying in a very volatile sector, you should know the risks involved. If you are not prepared to hold a tech stock through a 40% drop in share price, you should really think long and hard about buying in in the first place. Buying these volatile stocks near an all time high after a sharp runup is extreemly risky. What happened to you has happened to many others. I hope in the future you ask yourself these serious questions before making such a large purchase.


BRG

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