Newbie Do's & Don'ts

[Mariner*]

Posted by Ruellit
http://www.investorshub.com/boards/read_msg.asp?message_id=4986211

one of the problems of a popular board is investors who are
scared to ask a question and just lurk might actually start
believing their is merit to a stock that continues to be posted
on a daily basis on a thread..

I'm glad you brought this up! First of all I want to say I have the highest regard for your opinion and your experience in the market as a trader. All should also know, that they sometimes need a lancebps to English translator, lol. With that out of the way my opinion is: Anyone can do all the DD or technical analysis they want, but neither move the stock price!
What moves the share price of any equity is market sentiment and I think whether people realize this or not they are here to express their opinions. When an equity is mentioned by several different posters it normally comes to the attention of all, lurkers included! If those opinions are positive it gives the reader the impression that the stock is expected to rise in share price. If that opinion is supported with documents, links, or other methods, it adds credibility! But when blanket statements are made like "To Da Moon", or "Don't miss this one" we all should have the response that this is a pump. Personally, I use this as a sign of caution, but I also do some quick DD (check for dilution and share structure) and TA (check the charts) on the equity to judge whether or not I'm too late to make a buck on it. Depending on overall market sentiment I look at percentage gain of the day for the stock in question, if it's already up by 30% I'll pass it over. This isn't my preferred method of trading, or it hasn't been lately!
One thing I've found to be a sign of a good trade is, if I'm in a hurry to buy it usually means I just gave some money away, but if I take my time and wait for a good entry, I win more often!