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Re: righty post# 79

Monday, 12/14/2009 1:41:18 AM

Monday, December 14, 2009 1:41:18 AM

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Sun, December 13, 2009 10:16:14 AMFrom: "daytraders@thepennystockking.com" <daytraders@thepennystockking.com>Add to Contacts



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This email was sent on 12/13/2009 11:16 A friend of mine lost apparently alot of money investing off on his own dd. I do not like it when anyone loses there hard earned money. I would like to take this time to point out a few key factors to everyone.
1st. The market is crazy, it is very risky, and even the best chart reader cannot see the future of any pick. At any given moment a pick may be doing well and all of a sudden shocks everyone by bottoming out within minutes. It is simply a gamble, what goes up must come down. It is only a matter of when it comes down. That is why I never ride a stock over 100% invrease, take your profits when you get them and be happy.
2nd. Remember very very few stocks in the penny world ever make it to the nasdaq or higher, there is reasons why they are traded in the penny market.
3rd.Spread your investments out within your portfolio. Have some investments in energy, oil, technology, food, retail, etc. That way when 1 takes a loss u may regain it in another area of ur portfoilio. It is the overall of portfolio percentage you are interested in. This is why you have seen me take a loss in 1 pick up to 50% and a increase in another of 100% making my overall a 50% increase of my portfolio for the week, this is also how my overall investments for each week stay possitive.
4th never follow a stock pick below 50% loss. Once a pick has lost interest by inv, it usually bottoms out and is much harder to regain your losses.
5th. In order to make the above strategy work for you, you must invest the same amount in each pick. Spread your investments out. Has anyone ever played ROULETTE in vegas? You don't put all ur money on black #9 do you? If you do, your chances of coming up are slim. But if you spread your money out across the board your chances increase.
HAPPY TRADING


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