Do not I Know You From Somewhere?
If any of the following situations sound familiar look, consider our quick solution. For every situation there is an appropriate response that can maximize your benefits and minimize your loss. Take a look at some of this example.
Holding A Dog
Your stock continues to fall, from week to week. You keep thinking that it can not go any lower, or that it will eventually rebound. Part dries up, the price flat-lines ... Rumors about reverse splits materialize. The stock exchange is below the minimum listing requirements for his parents.
Diagnosis: You are probably with a sinking ship. You may think it can not go any lower, but it can. It can go to zero. Usually after a reverse split the price continues to drop. Where shares are expelled from their exchange two things happen: the price will immediately take a hit and trade volumes will dry up, making it harder to sell shares will be. It is better to admit you made a mistake and get what capital you have left out of the investment. Usually in these situations
Worm-Tongue
Your partner tells you about a penny stock that is a serious step. They have a patented technology that flashy sounds, although even after he declares that none of you really understand what it does or how it works. It is a new standard in the industry, and the potential market for their sales in the billions. His tip comes from an 'inside' man in the business. He does not know the official title of the inside guy, and he can not tell the company's revenue, employee size, management, or how long they have been in business.
Diagnosis: Your employee is the victim of a 'promotion' stock. Be careful! It's catchy. You are about to become the next victim in line, and you'll likely to infect a few others. And if they tell the story of this miraculously undiscovered penny stock, they will say all this news comes from an "inside man" at the company. Almost always, these situations are bad. Things are not as they seem. You are not taking a gamble on a stock with some potential. You are one of a hundred goals in a carefully structured and well-planned promotional scheme the share price increase. These schemes are immoral, illegal, and ... they happen all the time.
Message In A Bottle
You read an adverse reaction in a chat room or message board on a stock you own or are thinking of buying. It scares you and makes you second guess your investment decisions. You see that other people have responded in accordance with the posted message.
Diagnosis: Maybe there is some truth in this, perhaps none at all. Check to confirm a number of official sources or deny the comments. Look at the latest press releases as a question of fact. Call the Investor Relations Department as a theoretical or rumor-based matter. Consider all the message board and chat room information unfair to the proven honest.
Shooting The Moon
Your stock is rising, and your profits are important, but you still have not sold your shares. You love the company and was planning to invest for the long term, although you did not expect. Such strong performance If the stock has enriched this high should the value be increasingly recognized, so it would probably go higher.
Diagnosis: The stock may be ready for a short term pull back. Profit-taking sales are inevitable, and each time the shares go a little higher to increase the number of people thinking about taking their money out. After a strong run-up shares usually suffer some weakness, and if the rise was based on a press release or rumor that will not affect significantly the company's ability to achieve their goals can share sensitive to come all the way back down to their previous level . Maybe you want to sell to lock in your profits, half of your holdings and let the rest ride.
Peter Leeds, one of North America's leading Investment Coaches, is a self-made millionaire who made his fortune in the penny stock markets. He is also empowered thousands of people to do the same. He offers sites like P
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