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Stig wrote:
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Yes, look at the enclosed chart and see how much fun I am having.
I bought URIX at $13 then I had a great bargain at $2.50 but the best of all
was when I bought the last portion at 28 cents. that was a real bargain!
I am now waiting for a killing at 10 cents and I will feel real proud!!
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Sad to hear it. Please forgive my hindsighted comments. I think the overall
reason you got into trouble was because of playing with CHEAP stocks. Note
that institutional managers in general will not touch anything below 20 - 30
dollars. This happened to me a few years ago. Some stock I bought for 12
5/8, sold the next day for a breakeven (still not sure why, just looked
funny I guess). The day after that there was news of "accounting
irregularities" and the stock dropped to around 3 in a microsecond. I think
eventually it was delisted.
The point is, you are much SAFER in higher priced stocks. Even when one goes
bad, like LU the other day, at least it won't go to ZERO!!!!!
The other thing is averaging down. Some can make it work, but to me it's a
BAD idea! Jesse Livermore had a very interesting way of making sure you're
on the right side of the market. To whit: If you want to buy 500 shares,
start with 100. If the stock goes UP and breaks out, buy another 100. If
goes up more, buy another 100. And so on. More to the point, if it doesn't
go up, you never buy any more. So you wind up with 500 shares of the one
that went up, but just 100 of the one that went down.
rgds phil
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