Someone pointed this out to me and asked that i posted it
read it carefully
How can I know if someone on an investment site is a false
prophet or not? Here are some signs.
1.A false prophet is very knowledgeable about the stock he
follows and is always bullish.
2.A false prophet frequents only one thread on an investment
bulletin board, or may follow a group of stocks from a certain
sector...(example, desert dirts on Silicon)
3.A false prophet will sometimes encourage you to take possession
of your shares, to stop the Market Maker who is supposedly
shorting the stock.
4. A false prophet tries to play the Market Maker as an evil force
who wants you to sell your shares to him at a lower price.
5. A False prophet encourages you to hang in there as your losses
mount. Stay with the ship...Don't leave....
6. A False prophet is receiving payment from the gods of the
company, or has a large position at a low price in that particular
security...
7. A False prophet has a following of people who praise him for
his expertise. Many times one or two followers that frequent the
same thread are personal servants of the False prophet. He gives
them insider information, so that they can take up their positions
before press releases occur.
8. A False prophet talks of future stock prices that are unrealistic.
The prophet quotes prices of $20.00, $50.00 or $100.00 a share.
He loves to play on your emotion of greed.
9. A False prophet has a group of Followers that are blindly loyal.
Before they know it, the false prophet has dumped his shares while
they are buying, and he then offers them up as a sacrifice....They
are left holding an empty bag.
10. A False prophet suddenly disappears from a thread, and moves
on to another stock, either under a new alias, or by the same title.
How do I find a true prophet, or a real friend, who is not interested
in himself or just promoting a particular stock?
1.A true prophet frequents many different threads on a particular
investment bulletin board.
2.A true prophet can be both negative and positive on a stock.
3.A true prophet is retired or has another full-time job
4.A true prophet shows a humble spirit, and is always trying to
help out others.
5.A true prophet is right 60% of the time on his picks and wrong
40% of the time.
How can you determine if the prophet is a good stock picker and
that his picks are worthy of further investigation? If you think
someone is good, bookmark his profile on the internet site, and
follow his picks. On the day that he says he purchases a stock,
write down the entry price. Then when he disappears from a
thread, or informs you that he no longer has a position, write down
the closing price of the stock that day. Did it go up or down from
his entry point? In a short period of time, you can determine if he is
good or not.
But remember, NEVER pick a stock because a true prophet
recommended it. Only put the name of the stock down on paper so
that you can do your own due dilly on it. It is my hope that by the
end of this book, you will have your own 20 point evaluation that a
stock must pass before you consider purchase or a sell.
I have a friend named Jim from Milwaukee. Jim got caught up in
the desert dirt craze. The desert dirts are a sector of penny stocks
where the companies are trying to get gold and platinum out of
desert ore at economical prices. These stocks were a hot sector.
It seemed that easy money was to be made. Oh, to be rich quickly.
The green eyes of greed blinded his vision. How could he fail?
Some well-respected prophets were pushing the sector. Jim
followed his emotions and bought U.S. Power Systems(USPS) at
21 cents
a share. Shortly thereafter the stock tanked. As I write this book the
stock trades at 4 cents a share. Jim lost his shirt, and probably no
longer trades penny stocks because of this as well as other
failures.
The point I am making is that you need to have your own set of
disciplines before you buy any penny stock. You need to spend
time analyzing each company you are considering for purchase.
Don't you put time in before you purchase a car? And yet too many
people buy a penny stock on a whim. It is only when the stock
follows the guidelines that you set up, should you consider a
purchase or a se
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Bulgar |
