Someone just asked me what I meant by "free shares", pretty basic question, but if this person wasn't sure, I suppose there are others out there, so once again, for any newbie or lurkers out there, here's my reply:
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Reduce risk/reward ya know.
If I buy 100 shares at 1.00 my cost on them is $100. If I then sell 50 of those shares at
$2 I have the $100 back in my pocket and the remaining 50 have cost me zero, zippo,
nada.
If I buy 100 at $1 and sell 50 at $1.50, I have put $75 back in my pocket so the 50
remaining shares have a net cost to me of $0.50 each or $25. That is why they call it
reduce risk and reward. I now won't make as much but it has to drop below .50 for
me to lose any money.
One of the first, and most basic rules to learn, is PROTECT YOUR INVESTMENT $$.
I have not put a $ in my online trading account since the day I opened it, and if I ever
have to, I will quit, because that means I am losing more than I am winning, and I am
no good at the game, and should spend my time doing something else, LOL like hanging out, on the Golden Eagle thread, NOT!! |
