Jacob,
I would still give the same advise. Even though I have a long
position on AMTX and would benefit by people such as yourself
buying this stock, my recommendation for someone in your
position is to avoid this stock. If you are attempting to somehow
strike it by investing in something that goes up 10 times or 100
times in a month, you could actually end up losing quite a bit. And
it may be too late to try and do that with AMTX now.
Why not invest in stocks with lesser volatility, build your portfolio
and then use say 5% of your gains on stocks such as AMTX?
One strategy that has worked in the past for me was to sell when you
get a 25% gain on a stock and also sell when you get more than
a 5% loss to avoid losing too much. Tech stocks are more volatile,
so my parameters on this are 40% on the upside and 25% on
the downside. Also, do this when the market
is in good condition. i.e., don't try to go against the tide. As an
example, in today's environment, don't invest in a tech stock
unless there are strong indicators that tech sector as a whole is
going up. Try retailing. I had 1000 shares of Circuit City when
the retailing sector as a whole was doing well, but insiders
sold a chunk and drove the stock down last month. I got in at
27 and got out at 35.
Also, with AMTX my experience has been less than perfect or
pleasant. I got in at 14, out at 19, in at 32, out at 27 and
in again at 22. I can't count the number of times I bought
and sold CSCO during the past four years. But along the way,
I have accumulated some that I would never sell. |
