I thought I might make this post here because as a relatively new user on SI, I have been on for about 2 months and I have noticed a few things.
First of all did you ever notice why these so called experts pick stocks with a low float ( meaning small amount of shares outstanding),it is because they are assured of making money when you buy the stock. If they buy the stock and then release a newsletter telling you to buy the stock they are guaranteed to make money.
It is like the famous story of diamond traders. There are 6 diamond traders in a row, the first diamond trader sells the diamonds to the diamond trader next to him for $1,000 and then that diamond trader sells it to the next for $2,000 so every trader has made $1,000 and then the last trader pays $5,000 for the diamonds and then he looks around and he can't sell to anyone because all the other traders have left.
That is what is happening with these stocks, people are left with a stock that isn't worth half of what they paid for it. Now some people make money, just like in the diamond story 5 traders made money but one lost everything. Unfortunately, someday you will be the last trader and you will be left with nothing.
I hope that more people will come to their senses and stop listening to these people.
HJ |
