Or a 50% loss DOG. Momentum plays are for pros and those with level 2 access, along with a broker who will stay on the ride with you.
Let's face it. More than half the players lose on a momentum run. The odds are stacked against those who follow a momentum play.
Does that mean your picks are bad? Not at all. It's just the initial momentum run which is damaging in a couple ways.
First, for those who have been diehard investors in a stock, a momentum run often messes up their slow and steady charted course, often leaving them in worse shape then when they started.
Second, when stocks are announced, most people don't have time to do DD. Let's face it. The MAJORITY take the tip, call their broker, without even knowing what they are investing in, hoping to ride the wave up.
Add in the factor that market makers will screw with you if you set a market order, and you have a bad situation for the majority of investors.
Once the dust settles, if the company is a good one, it will rise again on it's own merits. But you gotta feel sorry for those stuck at the top.
Who makes a killing? You do. You buy before you announce. You sit back and watch the lemmings while on the phone with your broker. Once you have made your 100% or better, you sell. Piece of cake. Nice work (?) if you can get it.
For the record, I have followed some of your tips and invested after the momentum. I believe you have done your DD and that there is good money to be made.
The Mayor has blibber-blabbered thusly... |
