Newbie Do's & Don'ts

[bbgold]

Interesting Gramps
I think I understand your point about leverage, still not quite sure though. It has to do with limiting your risk in a stock that has become overpriced by selling and buying more shares of a lower priced stock? Better not tell that to Berkshire Hathaway holders. I agree with taking profits off of the table after a stock has moved up. I like the idea of having 'free' shares, ones where you have sold enough to get your money back, perhaps a Profit also, and still some shares leftover to hold longer term. I am not sure I completely understand the 'leverage' part. I never did do very good at trading pennystocks though so perhaps you are onto something. I always seemed to sell the stocks I thought were overpriced and buy a million shares of something that was really low. The funny thing was that a lot of the time there was a reason for the prior stock price going up, and it continued to do so, whereas there was a reason the cheaper stock price was so low, and it usually stayed that way. I always seemed to sell the uptrending stocks too early and put the money into something else cheaper that ended up worthless. I think I would rather have a few shares that are going up than speculating on a Lot of shares that I am unsure of? Guess it might be a personal decision whether to keep looking for something cheaper or holding something of value? Definitely take profits and keep an eye out for the Next good mover, where the price is going Up.
Enjoy the Evening Gramps! :^)