allocation of shares and options, page-36

Sasha,

I am not having a dig at you

BUT

you are using terms like hoping and praying with your share investments. Terms like this are more appropriate when playing lotto or in church.

Your mind says one thing but your bank balance is hoping that some other poster is correct.
You have no idea how good the other poster is or what his/her motives and financial situation are.

"my other stocks have delivered a nice return on my investments"
My advice would be to follow your own mind ( ! ) and not to listen too much to phantastic prospects touted by others.
Generally, when people are "promoting" a stock on a bulletin board the motive is to benefit from that by getting others interested to drive the price up.
That is different from you recommending a stock to a friend because such a recommendation will have no effect on the SP.


I have come tonight across a posting from gizard (356808) which I liked as it summarised many of my conclusions.
Here is a copy, thanks gizzard:

My basic rules to stay "alive" in the small end of the market

Sure they aren't for the experienced , but they will prevent a disaster.

The main thing is you can always buy a stock back after you exit.......... When it is UPTRENDING as strauss' diagram


I make sure I am ruthless at stops and try and let my winners run.


1) Set stops – never lose more than 15% on any one trade

2) NEVER EVER EVER EVER more than 5% of your capital in any one stock.

3) 2% rule , never lose more than 2% of your capital in any one trade. THIS WILL SAVE ALL THE I LOST EVERYTHING THREADS

4) THE TREND IS YOUR FRIEND, So simple and true

5) Follow the money ( somebody always knows something) and always take profits along the way

6) Never trade on leverage or margin. If you are good you don’t need to borrow. If you don’t have the money you aren’t ready

7) The ”market” knows more than you do, NEVER buy into down trending stocks

8) Pyramid or average up into winning trades

9) In every trade there is a smart person and a dumb one, which one are you? If you are new, you are the dumb one until you prove otherwise

10) NEVER believe management, believe the share price and the flow of money. This is one of the most important. Never call management.

11) Never buy into small cap floats if you are an “average joe”, If its any good you wont get any, if it’s a dog you’ll get heaps. Never buy into a float that advertises

12) Brokers and financial planners and newsletter writers are salesmen. If they were any good they wouldn’t need you

13) The golden rule “He who has all the gold makes all the rules”. The people who “control” companies make decisions for their benefit only. You are just a pain in the backside

14) There are none so blind as those who do not wish to see. Most of the time the signs are there for all to see.

15) Chat sites are filled with insiders, be wary of any person who only posts on one or two stocks. Or a sudden expert that appears out of nowhere to help you. I put them on ignore.


I hope my ramblings are of help to you.

FOLLOW THE TREND !
The winnings and the losses will not be as great but you can sleep at night.