Worlds Inc (WDDD)

[Tinkerer]

The more I watch this stock action the more I am confident in where it is headed. It trades nearly identically to VRNG. For those of you new to this sector (and I consider myself fairly new to it yet; others are much more familiar than I), very few people mess up when the price spikes, but where many get burned is they sell on dips. They start turning to charts and trader analysis, and when bottom support levels are broken they sell. And right about the moment they sell the stock goes up inexplicably. Remember one word: volatility. The volatility in these stocks breaks both the usual high limits and the usual low limits, but it remains tethered to an average price somewhere in the middle.

It might be helpful to think of the trading range like a tetherball on a pole. Most stocks are balls lashed to the center pole with short ropes. Therefore the price moves very little, either plus or minus, from the pole. But stocks like WDDD have a very long rope. The pole (fair market value based on DD) remains stable, but the swings either way are huge because of the long rope. Another way of putting it is this: if most stocks will fluctuate plus or minus 1-2% from fair market value on a daily basis, these stocks will fluctuate plus or minus 10-15% on a daily basis. Such fluctuations make chart analyses less helpful for the long term investor.

When this stock dips, keep in mind that it will look momentarily like the bottom has dropped out--and I mean entirely dropped out, not a buyer with 10%--and the temptation is to take a huge loss by just selling. Wait. Don't panic. Buying pressure comes not in small waves close together but in large waves spread far apart. Remember this for the next major dip. It will save you a lot of stress and irritability. Keep your eyes on the Markman, not on the charts, and if you love charts at least make sure you don't lose sight of the Markman.

I write this to keep newcomers from losing their tails in these plays. Stay the course; you'll be handsomely rewarded.