I posted this late last night, but am doing so again for those who are selling their shares today for no good reason. I wasn't right about the stock opening way down, but the rest of my story holds true, just as it holds true for any stock, including those trading over $100 a share. The bottom line is that the shorts will create fear, which in turn will cause the herd mentality, resulting in longs abandoning ship. By doing so, you're playing right into the hands of the shorts. They know how the game works so it's important that you know as well. They have the power to bring this and any stock down ~ Don't let them! Emotion & the stock market don't mix. KEEP ALL EMOTION OUT OF YOUR DECISIONS. BASE EVERY DECISION TO BUY OR SELL A STOCK ON YOUR OWN DUE DILIGENCE. LOOK AT THE FUTURE PROSPECTS OF THIS COMPANY AND DON"T LET THE SHORTS END UP MAKING DECISIONS FOR YOU.
Here's my post from last night ~
It's a shame that fear plays such a role in stock trading. Today was a great example. As soon as DEWM hit the high for the day, it started drifting lower. The shorts entered the scene, dropping the price further. Than, the follow the herd mentality set in. It always plays out the same, whether it's a penny stock or one of the DOW 30. The stock market is all about fear and emotion. When fear sets in, traders make irrational decisions to sell, only to see the stock rise in the days and weeks ahead. Look what happened when the market was closed for 4 days following 9/11/2001. When it reopened, all hell broke loose and mass psychology set in causing most stocks to fall 20% in one day. Was there any difference in the fundamentals of a stock than there was prior to 9/11, of course not. As I've seen so many times before, I knew this would be one of the best opportunities ever to buy stocks, not sell. That's what I did, I bought as many stocks as I could, using the full limit of my margin account. In the following month, I ended up making more money than I ever had before. The stock market has much more to do with psychology than it does with money. That's how to make money; use psychology to your advantage. When the herd mentality sets in, do just the opposite and you'll be guaranteed to be successful.
In my opinion, DEWM is a long-term hold, as the company is run by an incredibly competent and driven CEO. This is not your usual penny stock with lots of toxic financing, no product, etc. This is a real company, with real products, and with all sorts of deals in the works. If you spend some time doing your DD, you'll see the enormous challenges that Dr. Moran has faced, and the remarkable way in which he's met all of the challenges head on. Here is a man with a mission, and I can tell you from seeing him in action that nothing will stand in his way.
Now, based on how market psychology works, I would expect that the first hour of trading on DEWM tomorrow will be way down. The shorts will be out in force, and those who see the drop in price will abandon ship. In my opinion, if this scenario plays out, it would be the perfect time for the company to issue their next PR. Nothing would give me more pleasure than to see the shorts wiped out, and the sellers made to realize that this company is out to prove all naysayers wrong. I'm long & strong DEWM because I know that the fundamentals are as strong as can be. The product is superb, the partnerships are outstanding, and this is just the very beginning stage of what will be an enormously successful company.
The above post from last night is living proof of the herd mentality. The shorts are using this mornings PR and the unexpected(by me) early morning rise in SP, as a combined team effort to bring the price down. If you sell them your shares, you're doing exactly what they want & fully expect you to do. Now that the price is dropping, the shorts will continue to do their damage, that is unless you refuse to sell out. As mentioned, DEWM is a company with strong fundamentals, a super diligent CEO and a great future. Don't give that all away. Play smart and hold onto your shares.
