Should I try to trade everyone of the Picks that I see?
Question: If I see it on the Picks thread should I short it automatically?
Answer: NO
Reason: You should have some familarity with the stock and what it is about, you should do some level of DD. If you do not, the price can rise, and you can sell off for a loss, because you don't understand the market forces playing upon the stock. If you are in totally unfamilar with the stock, the chances of you losing out to a short squeeze are very much increased.
You should tend to pick stocks that you have familarity with. IE If you are a big music fan, and have no interest what-so-ever in KTEL, this is important knowledge for YOU to have.
Bottomline, take the Picks 'that you' have personal knowledge with, in order to better increase your own personal chances of taking profit. Remember that the trade has the entry, the middle, and the exit. Don't undervalue, the knowledge needed for that middle period. |
