monday, page-10

"this baby would warrant my full attention"

Comment:

That imo is precisly why so many traders/investors get shaken out of what could be their absolutely massive winners.

All you need to do is:
1. Select the right stock and
2. Get in early BEFORE the crowd.

If you then give that stock "full attention" which would include watching every on screen bid and offer plus every trade plus every point move in the share price, both up and down, then that "full attention" has to be justified.

The way that "full attention" is justified is by taking some action, usually selling and/or often being shaken out by the sharks.

Even if traders/investors sell with the intention of buying back in at a lower price, invariably after being shaken out the price rises or the opportunity to buy in cheaper is overlooked with the fear that the stock is going to fall lower or even collapse. Often the money to repurchase will not even be available because it has been put into another stock!

Then the stock recovers to the initial sell price, or moves higher and those traders/investors who gave it their full attention are no longer on the train for the ride.

As I have pointed out in another post, it is a nice psychological ploy to use the purchase price of a stock and so the percentage profit made to delude oneself that a sale was the right decision.

If a stock was purchased at 3c and was sold at 30c I don't care how many times someone tells themself or me "I made a 10 bagger so I can't complain about the profit I made." Should the stock them promptly move on to $1.00, $2.00 or higher the sell decision was a blunder.

IMO percentage profit made is irrelevant in deciding whether or not a stock should be sold.

Now I wonder how many small investors/traders who have been playing the resource stocks over the last few years have share holdings now worth say $500,0000 or one million dollars or even higher?

I wonder what it looks like when you go back to all those stocks you sold in say 2004 and 2005 and look at what they would be worth now had you simply done nothing, instead of giving them your "full attention." Stocks like DYL, PDN,SMM,PMA, GBG and the list goes on and on and on and on...

You wouldn't have needed to put very much in any number of individual stocks a few years ago bought early before the crowd started to get in for those individual holdings to now be worth at least a few hundred thousand dollars per stock, if not more.