bobcor, you clarified things a little
You consider "trash" to be issues where you don't know whether you can "expect the company to deliver an income stream in future years ..." and ones that are "overly expensive" and not ones that are "employing thousands of people worldwide, earning real money."
But if those fundamental criteria and others of that nature are what you base your buys on, then it's clear that your style differs quite a bit from others on the board who take a more technical approach. For example, part of the premise of buying an issue whose chart shows it in an ascending triangle pattern is "because the stock is going up" but I don't think that those who do so should be termed "gamblers" rather than investors, even though their "gamble" might be one that they hold for months or years.
Many fledging industries (like nanotechs, VoIPs, small security stocks and biotechs, etc.) that show a lot of promise but have not yet shown significant results could be lumped into the "trash" category based on your criteria. Whether or not they should be deemed "trash" is another matter, however. For example, three years ago INVN was an unknown company with little in the way of steady revenue and recently they were bought out by GE because of their success and the niche they occupy in their sector.
There are many ways to trade or invest stocks, but when I'm looking for an issue to buy one of the first things I look for is one that is already going up. I normally don't try to use wave scenarios, chart patterns or indicators to look for a stock that may have bottomed as many people do. Instead I usually look for stocks in a well established trend that I think will continue with the idea of capturing a middle-bite of that trend. Therefore, looking for stocks that are going up (or looking for shorting opps in stocks that are already going down) are a good fit to my approach.
BTW, I haven't had a position in ASKJ since August. I'm sorry that I've missed a few potential points to get back in, as it has more than doubled since then |
