where to start learning?, page-12

Gizard ,I think what you've provided there is very sensible stock standard advice for anyone who wants to trade stocks and has no background ,experience ,or smarts in the industry.

The issue I have is that I've made a lot of money in stocks doing the complete opposite of what is recommended in the first six instances . Personally I love making big bets on stocks in downtrends ,especially when the chart looks pathetic . The lower they go the more I load up .You can believe me when I tell you that when they turn around the results can be astronomical .Of course there's a lot of research and inner knowledge that goes into the application ,but my point is that you're either a punter looking to make big money or you're a grinder looking to survive and make a few shekels by being disciplined and mitigating risk.

If you are either I completely endorse two of your recommendations .If you're looking at specs don't even bother if they don't have the cash.Sooner or later you will get your comeuppance either in some nasty surprises or the dreaded capital raise . Similarly never believe anything management says about a spec company's activities or prospects ,do not ring them ,do not talk to them ,regard everything that they say as irrelevant.

As far as directors selling in the previous year I reckon that's a furphy .I've been involved in companies where directors sell for all sorts of reasons unrelated to the stock oftentimes when the company's going very well.Conversely I've been involved in companies where things had been going so terribly for a long time that the directors were too petrified to sell for fear of retribution once things turned really sour .I don't take any notice of that .It's when the deckchairs get rearranged and certain holders sell out that I take notice of.

My philosophy is that no one ever made any real money if they were worried about losing it ,but you need to actually lose it a couple of times to do it lethally .So as I say it's horses for courses