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SynthTrader

01/07/11 10:16 AM

#16086 RE: raekai #16084

My advice would be not to follow any promotional / pump company. There are too many dangers there. Only follow them if it is with the intent to look for a future buy after their promoted stock tumbles (which they always do). My advice would be to follow the traditional, tried-and-true advice: buy the dips and sell the rips. Buy stocks when they are cheap, having dropped in price, when the price is ready to go back up. Learn to read charts.
For instance, a buy on LOCN in the .02's is looking pretty good right now because .021 is the 200-day moving average on the daily chart, and typically a good support level. There is not enough "dump" volume to push it through that support right away, so my technical analysis would say that the price will bounce, at least a little, off that moving average. You'd be "buying the dip".

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EZmoneyED

01/07/11 10:20 AM

#16087 RE: raekai #16084

Watch Edgar like a hawk for filings on companies but you also have to be able to interpret them.