Energy One Corp (EGOC)

[agua77]

Marty….from a logical perspective there really isn’t any such thing as a long hauler on the otc. Those individuals are usually referenced as bag holders. I’m not here for lovin or attention…in fact my posts are a counterbalance to all the emotional “buzz” that typically becomes detrimental to newer investors learning how to trade. As far as long hauler, both you and I know there was an ideal time to sell this stock, especially without a merging candidate in place, and the share price simply “pumped” on hypotheticals. Depending on where you bought….that was somewhere in the Pennies. As far as buying, despite the encouragement, there was never good buying points since the start of the decline, because in general terms, this has been a continual downtrend. I’ve showed the math over and over on various points, but holding a ticker with a declining share price is never a great idea regardless of how it’s spun. Some try averaging down, but the issue is the share price isn’t stable, so it continues to downtrend….trapping investors even more. In some cases, if the company is legitimate, or a pump takes place, there can be a reversal and a more sufficient place of re-entry.

99% of the time…a stock is never going to go straight up. The market makers, shorters, daytraders, and diluting company will make sure of that.

Some will try to rationalize it and talk about short vs long term capital gains….it’s also nonsense. Anyone with any viable accounting knowledge, understands that short term tax gain rates are dependent on what tax bracket an individual falls under, and they can see the logic in selling something to secure profits before they disappear…..especially when a stock is showing signs of a trend downward.

If Someone has a day job and earns $100,000 and also sells a stock for another $20,000 gain….then their total income for the year is $120,000. They will pay 24% tax on that $20,000 gain which equates to $4,800. If they held it for long term capital gains, they’d pay 20% tax which equates to $4,000. If they are up $20,000 and hold it all the way down to $5000 gains, they certainly lost a lot of profits regardless of tax rates.

As for the individual who asked what they should do now….There was clearly a time to sell this stock…I personally feel we will see trips again.