monday, page-24

There was absolute hysteria and panic in this place in 2005 ago about FMG. So many had no understanding of the demand for iron ore nor how to even start valuing FMG, which had risen sharply from 50c. and was sitting on massive iron ore reserves.

You can just imagine the sorts of posts at the time. Many traders who did not really know what they were buying and were just following momentum were getting themselves wiped out.

I remember seeing a thread started by Goblin headed "Capitulation" and just laughing at it. Because I knew it showed no understanding of the developing iron ore boom nor of FMG.

FMG is now trading over $60.00.

Here is one post I made which highlighted the dangers of short term trading in a volatile situation when you do not understand the value of what you are trading in.

how traders wiped out **** (siameseparrot)
Code: FMG - FORTESCUE METALS GROUP LTD
Post: 557629 (Start of thread) Views: 111
Posted: 31/03/05 14:08

I wonder how many traders and speculators have this tale of woe:

1. Bought FMG over $5.00 four FMG trading days ago.

2. Sold out a day later at $3.30 when the price gapped down in a freefall.

3. Jumped in on the 29th. March after the company returned from suspension and paid nearly $4.00, expecting the stock to go back well over $5.00 and recoup their losses.

4. Today, two days later are feeling battered, sick and sorry, wondering what to do with FMG currently trading at $2.84.