There are two basic types of investors, short term investors aka "SHORTS" these folks tend to jump in and out of stocks at a rapid pace. Some may buy and sell shares of the same stock multiple times in one day even. When you get to that point the term " Flipper" is used frequently. The basic idea is to capitalize on small moves in share price to try and make a quick profit. On stocks with wild swings ( like most penny stocks) there can be large gains or losses to be made!
Long Term investors aka " LONGS " tend to buy a stock that looks like it has a good down range potential. These folks may miss out on quick cash to be made by jumping in and out but they dont run as high a risk of being out of the stock when it makes a big run. " Longs tend to look more towards the POT-O-GOLD at the end of the rainbow.
For instance there are some of on this board that have shares we bought back when BIEL was well WELL under a penny. and there are surely some that bought their first shares today and then promptly sold them to make a quick buck. Me.... Im CRAZY LONG here!!!
some folks play both sides of the fence as in have a number of shares that they hold long term and some cash that theyy use to try and play the shorts. Or may be long on one stock and short in another.
Both methods can make you tons of money and both have the chance to lose just as much. Sorry to ramble but its midnight here so not much going on any way
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