If it skyrockets after we sell it. there is "usually" a reason, hence being familiar with a stock we should know of any potential near term catalysts...
Conversely, it could go in the other direction as Ttward pointed out
It is all about risk/reward...
And then there are "punts" (We all know happened to MSB back at $5.00) hehehe ... A few of us got stung on that oneIt could have gone in any direction, and I was quite sure what direction... Luckily I only bought a small parcel
Others were not so lucky...
Some of us quickly cut our losses, thus allowing that capital to recoup the loss... Others might have held on til late November and sold at a very small loss when it crept back up to almost $5 (but 2 months stuck in the stock) ... And I am sure some people here refused to sell thinking it is still going to skyrocket in the near future (SP currently 1.88)...
Glad I got out when I did with my small loss (I feel like that guy in Ttwards GIF)
