** hot copper favourite **, page-9

ok -

1. It usually makes big losses period after period

2. It has a 'story' - ie some oil field next to another that was successful 50 years ago or a biotech that has a 'potential' cure for something like scrotum baldness or asian bird flu.

3. It has a history of big moves up and then comes all the way back again - if it kept going then it likely has profits and this invalidates point 1 above.
Because it comes back again then thinking is that 'next time' the trader will catch it.

4. It doesn't pay a dividend

5. It often has options that are out of the money with little hope - but great leverage for a fast $.

6. It is usually 'reincarnated' AT LEAST once from a past failure under a different company/stock code.

7. It rarely has and fundamentals/financials - then work would be required to do some calculations, compare to peers, calc value based on researched forecasts etc... If it has no fundamentals then there must be blue sky only stopping it!

8. Someone disliked owns it or writes something negative on it - so posts are written to remind them that it has gone nowhere or backwards etc...

9. It belongs to a 'HOT' sector at the moment - ie Oil, Gold. The 'Financials' industry or Retail etc... are never HOT - the best companies in these areas only make profits far exceeding their peers and go up in price say 30% to 80% compounding - who would want to own something or worse still discuss something that boring.

10. It is often priced at less than 20 cents

11. The trend is often down on the weekly charts - ie 13 week and 26 week ema's are pointing to the floor but up on the daily chart due to a recent spike. If by chance all weekly indicators turn up then sell it and don't talk about it any more until they turn down again.

enough for now?