Wow, what a week! Actually what a 2 days! I'm down $2,000, but what an experience! Probably more entertaining than going to Vegas on a $2,000 junket...
What did we learn. (For all newbie penny stock investors like myself.)
Jimbostein's rules - (a work in progress...all of which I violated since Wednesday..when I bought 5,000 at .34 (my only potentially good move), averaged up Thursday for another 5,000 at $.58, and then down by buying 10,000 more after the blood bath at $.26) Now with 20,000 at average of $.37.
Rule 1: When you buy into a stock during a monumental run up, be ready (whether you like the company or not) to become a day trader.
I broke this rule by not selling my 5,000 for a double at $.70.
Rule 2: Don't average up on a stock in the middle of a pullback of a spike, instead let the stock bounce around several times, until it finds a base.
I broke this rule by buying on the initial bounce back up from the halt at $.80 and the reopen at about $.50. (Paid a handsome $.58)
Rule 3: If you get caught wanting to average down, wait a few days until after the stock cools off. I could have bought back in a little cheaper today. Perhaps cheaper Monday, but now I'm committed, with more cash than I care to have tied up.
Rule 4: These rules could be flipped if I had been lucky. And we bounced back up to stay.
Now a question to anyone who was patient enough to read the above...
Any predictions on how long from now I'll get my double? I'm down, but happy to be here.
Thanks in advance... |
