Good Day Brent and H.I.S. Members,
I found this post on the ADCS board posted by Doc to be an excellent view of trading in the penny arena. Although it is not stock specific and was deleted immediately, I find it to be very On Topic for any board!
I, for one, am very guilty of the "greed factor" and find myself from time to time drinking too much Kool Aide. I have done fairly well since December, actually very well, and I would like to publicly say thank you to people like you, VERYLONG4, JoeNatural, Sheff, Sterling, the WU professors, and a few others for helping me keep things real. I still tend to hold a little too long sometimes, but the horror stories of SLJB, CKYS and ADCS are becoming a thing of the past for me. By giving each other a smack upside the head sometimes is proving itself to be very helpful!
There are a couple of stocks, as you know, that I will hold for a long, long time including CDCH and SIVC. But for the most part, Doc is spot on with this following post:
Posted by: VERYLONG4
In reply to: brentjanice who wrote msg# 23292 Date:6/7/2008 10:46:10 AM
Post #23315 of 23339
Choosing poorly versus choosing wisely....
One thing I learned is that one should never greedily invest too much in any pinksheet stock regardless of how "sure" the individual is of its ultimate success. The real choice in many cases is not in what one necessarily does buy or trade, but moreso in how smart the choice is in money management AFTER the initial investment dollars are put in.
It is VITALLY important to take one's profits as quickly as possible in the stock market and reduce one's exposure to risk, particularly in the world of pinksheet stocks. It is also vital to exit when the tape says things are not going right.
I would advocate selling half at a double, a third at a triple, or a fourth at a quadruple, etc., but even more conservatively, in the world of pinkies, even selling at a 20% gain will more consistently bring in profits and conserve capital. Better to make less on 10 different stocks than to risk everything in one hopeful that will "go to the moon".
If as it is often touted that over 90% or sometimes 99% of pinksheet stocks are scams, why are there so many stocks out there in pinksheet land that people continue to assure themselves they are "the one" and they will hold and hold and hold and "never sell" until it reaches the unrealistic dollar stock price and then scream and cry when it all collapses?
Smart money is selling into any run very early on, most likely buying back on dips and re-selling and getting out early enough before the big cratering takes place. Even if you want a very long term hold, why hold with all your initial investment and never take profits along the way with the prospect of an unforseen emergency that could directly or indirectly affect your stock? What is the shame in riding with free shares but LESS shares than you started with?
I have long been gone from this one and I admit I have not been looking at the stock message board here in awhile, so I don't know all the particulars of why this fell, but I don't think that people necessarily chose poorly here when they had hopes and expectations touted over and over to them, or information provided to them from company press releases. They did choose poorly with money management IF they had a profit sometime along the way and greedily did not take advantage of the profit opportunity and the many opportunities to ride on free shares. This stock had many such opportunities.
How is one to know when and when not to believe other posters, CEO's, promoters, press releases, financials or otherwise, even in the days now where auditing firms are being convicted now for stating false audited financials for companies even in larger companies on higher exchanges?
Too many misrepresentations on so many levels and the only thing you can really do to protect yourself is to minimize one's risk as quickly as possible in ANY stock, regardless of the exchange it is on and regardless of what information you are using to make your decision.
Remember, there are PLENTY of other stocks out there to make money on, and with better money management, it is possible to make significant gains. Avoid greed wherever possible.
Act in Spite of Fear and Uncertainty
Blockman
Act in Spite of Fear and Uncertainty
Blockman
