Quote:
Originally posted by Daval
Any advice for me? I know I am playing a dangerous game, and I've won some and lost some. My biggest problem is as you said volume. When I want to sell there isnt always buyers, and when I want to buy, an order can take a day or two to fill, and then sometimes i'm forced to chase the stock which is a dangerous game.
I know as a broker you probably think I'm an idiot, but basically I want to make money in the market, and if I want to wait out for the long term I'm using mutual funds (thats where i Have the bulk of my money).
|
I'll give you only one piece of advice if you insist on trading this way: Set down some *concrete* rules and stick with them. If your rule says sell if you're down 20%, damn well sell when you're down 20%. Don't stick on the thing praying it's gonna come back. There's a human tendancy to want to sell the winners to "lock in" profit and to hold the losers in the hopes that you'll get your money back. This is a bass-ackwards way to trade. That said, remember that penny stocks are for companies that by definition are <i>not</i> making money and have little in the way of funding, and that when companies like this cease operations you will not get any kind of warning ahead of time. It sounds like you're putting all of your money in a single stock at any given time. That's a very dangerous game when you're talking about a company that may or may not be there tomorrow. Remember always that you're not buying a symbol. You're buying a piece of a company. If that company is shit, congratulations, you just bought 2,000 little pieces of shit. There's always the "greater fool" theory of investing, and it works sometimes, but somebody always ends up holding the bag. That person never set out to be the greatest fool.
Bob