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01/11/04
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| Moderator vlispxpert | |||
| Assistants dabonenose matt24d K-Pax | |||
Welcome to Vlispxpert's Underground. This board is mainly for undervalued, oversold stock plays. The price of the stock is not of concern, so .10 to $20+ picks are welcome if they meet the criteria below. (No pinks or otcbb please) I will be placing my watch picks once a week or whenever I find one I really like...These days it's quality over quantity of picks...
Disclaimer:
Anyone who is considering investing in any of my oversold picks, needs to understand that there is usually a reason the stock is oversold in the first place. 9 times out of 10 there was some bad news that caused a major sell off...
These plays are risky in nature because of this factor alone. I am playing the odds when I buy an oversold stock. The theory behind my picks is the price shouldn't go much lower, due to the oversold indicators & the shorts are close to covering. JMHO
If the price does go lower, I average down, which I believe just causes more pressure on the stock rather than relieving pressure by selling. I usually wait for a 25-35% drop before averaging down, depending on the volume & activity of the market.
I also believe in holding the stock through the turbulant bottom when it is trying to correct itself. It may take a day or it may take months, but the theory is, it will turn around at some point...JMHO
There are 4 things that will make me sell a stock immediately:
1) Strong dilution (over 50% addition to O/S).
2) Bankruptcy.
3) Reverse split.
4) Bad news, usually of the financial nature (Big losses, bad quarter, losing major client, etc.)
I just wanted to post this as a reminder to those who do decide to buy one of my picks that there is a high risk factor & that my picks aren't really daytrades. They are buy & hold until the market comes to you. Sometimes they play out like daytrades, and sometimes it's like water drip torture for weeks on end...
I believe in my method, however contrary it is to the daytrade crowd, who wants instant gratification or it's a complete failure in their minds....
Good luck & good trading, I hope this helps in future decisions on buying any future picks...Thanks
Terminology you may hear:
Starter=1%-2% amount to keep eye on stock while it's trying to find support.
Add=2%-6% tripling of position after a 20-35% dip.
Back up Truck=20%-30%
"If you want to get rich, stick your head above the crowd, see which way it is going, and immediately head in the opposite direction" -My Favorite Quote-
"The stock market is a vehicle to move wealth from the impatient to the patient". -Another Great Quote-
My other board strictly for trading gold/silver stocks is located at:
http://investorshub.advfn.com/Beaten-Down-Junior-Gold-and-Silver-Stocks-30266/
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