beginners advice, page-35

  1. 1,485 Posts.
    I'm not a pro trader, or even a regular poster, but here's my 5 Baht worth:

    Be careful investing in "hot" stocks that have already made a good announcement. Sustained runs are rare these days, which means you need to be on-board just before an anticipated announcement, and hope it goes well. This means you should keep a diary of when announcements are due and watch the volume movements. Sometimes, you'll be pencilling in dates 6-10 weeks in advance.

    Tech and Bio stocks can run very hard on company-changing news, but tend to do nothing for months at a time.

    Mining companies with plenty of tenements or exploratory projects offer great value for value discoveries, but they burn through cash quickly, and frequently have to go back to the market with discounted offers. When these offers are made to sophisticated investors only, we punters get undercut and the price usually falls.

    In my opinion, on-shore Oil/Gas explorers offer the best plays if you're prepared to risk your capital for multi-baggers. A profitable hydrocarbon discovery can be rigged up for prodcution within 6-12 months and provide valuable income, allowing the explorer to expand and fund other drill projects without having to dilute its share-base. If you're in a company with a result pending, take your profit if the market runs, because waiting for official oil/gas results is a fast way to lose all your profit if/when a duster is announced, or if the rates are not commercial.

    Like others have said, small profits are the key to success.

 
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