Re: I should've listened.....


Yvette <yvette726@xxxxxxxxx> wrote in message
news:1143737789.144419.290920@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

To: Mr.Bill Reid

(sorry, i dunno how to quote ur post)

Yeah, I used to have the same problems when I was on Google(TM)
Groups when it was called "DejaNews"...

Hm, actually, i am not like really upset because of losing money. But
of course no ones would want to lose money.

Well, good, you DON"T want to lose money, you want to make
money, but you can drive yourself nutzzzz watching every little squiggle
of the stock...if I had sold out every stock I bought that did a little
immediate exploration of negative territory, I would have sold out
most of my winning stocks...

So I don't even really care
about the money that I'd lost. I just am not sure if I should just
watch it goes down, or just sell it at this point.

The answer to that depends on what you intended to do in the first
place. If you were looking to hold this company for a year and let it
double-triple or more because you thought this new product would
sell well when it hit the market, you've only knocked about 10%
off the 100%-200% profit you were going for...

You did know what you were going after, didn't you?

But I think you're really right, I've learned something out of it!

OK, here's something you should know: there is a old saying in
the stock market: buy on the rumor, sell on the news.

It looks like there was a rumor that this company would get
clearance to sell this new product, and a lot of people bought
it in anticipation. Then a lot of them sold it when the news
of the clearance came out on Monday!

Here's the lesson, your "mistake": generally you should not
BUY a stock during a high-volume rapid price rise (better to
SELL at that time). Instead of just blundering in on Monday,
you should have waited for the volume and price to stabilize
(like it did towards the end of today).

haha I wonder if i should still consider majoring in finance...

Sure, and get a job on the "right side" of the market, selling
over-priced securities to suckers. 100% guaranteed money,
you can't beat it.

If you have some type of good handle on the amount of revenue
and profit that you think this company could make on its new
product, and can thus calculate a "fair value" that a rational businessman
would pay for that business, you are ready to face the fact that
only occasionally does the stock price reflect that "fair value",
and that apparently "irrational" moves will be occurring all the
time in ANY stock you buy...

---
William Ernest Reid
Post count: 309



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