on't I Know You From continues to decline. If shares
Somewhere?
are bumped from their exchange
two things will happen: the price
If any of the following will take an immediate hit, and
situations look familiar to you, trading volumes will dry up so it
you may want to consider our will be harder to sell shares.
quick fix. For every situation, Usually in these situations it is
there is an appropriate response better to admit you made a
that can maximize your benefit, mistake and get what capital you
and limit your loss. Take a look have left out of the investment.
at some of these for example.
Worm-Tongue
Holding A Dog
Your associate tells you about a
Your stock continues to sink, penny stock that is going to make
week by week. You keep thinking a serious move. They've got a
that it can't go any lower, or patented technology that sounds
that it will rebound eventually. flashy, although even after he
Volume dries up, the price explains it neither of you really
flat-lines... Rumors of reverse understand what it does or how it
splits materialize. The stock is works. It is going to set a new
below minimum listing standard in the industry, and the
requirements for its parent potential market for their sales
exchange. is in the billions. His tip comes
from an 'inside' guy at the
Diagnosis: You are probably company. He doesn't know the
holding a sinking ship. You may official title of the inside guy,
think it can't go lower, but it and he can't tell you the
can. It can go to zero. Usually company's revenues, employee
after a reverse-split the price size, management structure, or
how long they've been in about a stock you hold or are
business. thinking of buying. It scares you
and makes you second guess your
Diagnosis: Your associate may be investment decisions. You see
the victim of a 'promotional' that other people have responded
stock. Be careful! It's catchy. in agreement to the posted
You are about to become the next message.
victim in the line, and you'll
probably infect a few others too. Diagnosis: Maybe there is some
And when they tell the story of truth to it, maybe none
this miraculously undiscovered whatsoever. Check with some
penny stock, they'll be saying official sources to confirm or
this news all comes from an deny the comments. Look at the
'inside guy' at the company. latest press releases if it is a
Almost always these situations factual matter. Call the Investor
turn out badly. Things are not as Relations department if it is a
they seem. You aren't taking a theoretical or rumor-based
gamble on a stock with some matter. Consider all message
potential. You are one of a board and chat room information
hundred targets in a carefully dishonest until proven honest.
constructed and well-planned
promotional scheme to drive the Shooting The Moon
share price up. These schemes are
immoral, illegal, and... they Your stock has been soaring, and
happen all the time. your profits are significant,
although you still haven't sold
Message In A Bottle your shares. You like the company
and had intended to invest for
You read a detrimental comment in the long-term, although you
a chat room or message board hadn't expected such strong
performance. If the stock has usually suffer some weakness, and
spiked this high, it's value must if the rise was based on a press
be getting recognized, so it release or rumor that won't
could probably go higher. significantly impact the
company's ability to meet their
Diagnosis: The stock may be ready goals, shares may be prone to
for a short term pull back. coming all the way back down to
Profit-taking sales are their previous level. You may
inevitable, and each time the want to sell half of your
shares go a little higher the holdings to lock in your gains,
number of people thinking about and let the rest ride.
taking their money out increases.
After a strong run-up shares
About the Author:
Peter Leeds, one of North America's leading Investment Coaches, is a self-made millionaire who has created his fortunes on the stock markets. He has also empowered thousands of individuals to do the same. He offers sites like http://www.pennystocks.com
Source: www.isnare.com
