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Re: Sojourner55 post# 284853

Monday, 05/25/2020 5:52:31 PM

Monday, May 25, 2020 5:52:31 PM

Post# of 682015
I can understand the idea of resistance being established by a prior high, a place in which people purchase, and have been down for some time, and wish to get out and break even. I suspect that's one of the biggest mistake some investors make, it's something I learned before I was a teenager.

My father wanted me to learn something about stock, so he bought me a few shares in a small petroleum company. I followed it as it went down, then after some time it moved upward. It was up substantially when I asked my father about it, he told me that on breaking even he moved it to a fund with a really hot fund manager. You guessed it, it went nowhere but down.

Holding a stock until you're break even, then getting out without at least exploring why it's come back from a big loss is foolish IMHO. If you really have no hope for the stock, get out, take your loss and invest in something you believe in. However, if you've decided to hold, don't bail just because you're even, look at the potential and I believe most of the time you'll see the potential for further gains.

Analysts often do something similar when they make a stock a buy, with a target that's say 25% above the current price. When their target is met quickly they often change the rating to hold, and announce new buy recommendations. When the stock moves up dramatically, they want credit for the gain, after all they told you to hold. They know damn well that investors who really follow them, who don't have infinite funds will sell what they moved to hold, and purchase the new buy, but they'll take credit for the gain. If they were honest in the first place they'd look at why the stock met their target rapidly, and consider raising the target, rather than downgrading from buy to hold. One reason they don't do it is they're working for a brokerage, and the brokerage is making a market for the drug they're moving up to a buy rating.

I for one rarely pay attention to these people, or many of the stock analysis sites, accept out of interest as to what they're saying. In the past I've seen huge gains missed by such sites as stocks that are virtually 100% sell move to 100% buys, and likewise substantial losses when stocks rated 100% buy move to sell. It doesn't always work that way, but I'd rather be the judge, not let others do the judging for me.

In the case of NWBO, it had sell ratings when it was $.17 not that long ago. My biggest criticism of these ratings is they don't look at upcoming events. When it was $.17, we knew the trial would be unblinding in the reasonably near term, why would you sell at a time like that.

Gary
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