If you have to pray to help your stocks rise, buy some bonds instead and hold them to maturity.
How to pick a stock that will go up enough to get freebies takes time and money,...a lot more time and money than most people want to put into this. You need to know where the money is flowing, and many times a chart doesn't help much because by the time the chart picks it up, the stock should be sold to freebies. You have to live and breathe the market, know the players, understand their motivations and the lifecycle of a successful play. You need a great deal of technical knowledge and experience to judge the fundamentals and to know when someone is promising more than they can deliver in the timelines they say they can, if they can at all. Successful plays must have the 4 p's to be in the race,...people (fundamentals), property (fundamentals), promotion (spin), and most important of all, Phluck, if freebies are to be turned into good income.
Because Phluck is so important, you must own a lot of plays to be holding the lucky 10, 100 or 1000+ bagger. You're right,..I have hundreds, and every now and then one scores the big one,...Bre-x, Pierina, SWG, Microsoft,...but there are thousands that have done (following along in your piss analogy)...piss all! The more stocks you own, the better chance you'll be holding the next 1000+ bagger. There are lots of reasons to sell the freebies to zero,...the play may die, or a cheap financing may come along to give one a chance to get more freebies. Selling to freebies is a lot easier than judging when to sell a hot stock. I may not get the big score holding 100,000 shares of the "hit out of the park" stock (and how do I tell when to sell), but I can do nearly as well holding a chitload of singles and doubles (selling to freebies,...the sell part is easy).
I'm really not sure why the concept of selling down to freebies is so hard to grasp, unless your greed meter is set too high. You buy 5000 shares of a $0.50 stock which costs you $2537.50 at your local discount brokers. If it goes to $0.65 you sell 4000 and retrieve $2561.00. You now have 1000 freebies and $24 to buy a case of twofour of Lakeport. In a few years or so, your freebies suddenly turn into SWG at $40 per share. You sell half to outfit your house with a beautiful sauna and hottub room and still have $24 for a case of twofour of Lakeport to celebrate. The selling was simple, as hundreds of stocks go from $0.50 to $0.65,...they're a lot easier to pick than the ones that go to $100.
I never average down anymore,...if the stock is falling I misread the 4 p's so I sell down to a small amount or nothing, and look for the reasons why the street is selling. Lots of people know a lot more than the majority. If fundamentals change one can make a re entry. I don't own freebies with lousy fundamentals. To judge fundamentals you need a lot of technical knowledge of the play and people involved. No easy way to gain this knowledge,..lots of books, NR's, conferences, seminars etc.
Realize that many of the principles of these public companies live like multimillionaires on your money as long as a play is alive. These are very good salespeople, and the stockmarket is one of the best legal ways to sell people on a dream (if you really want to make money in the stockmarket, be a principle, insiders, pro or broker). Be aware that what they aren't telling you is many times more important than what they are emphasizing. When you invest in the stockmarket you are in the cesspool with a lot of slimeballs, many of whom live like kings sucking money from ignorant people. However, if you get to know the game and the folks that play it, you can live like a prince in their shadow.
Freebies allow me to play the market without exposing my capital. It gives one mad money to buy luxuries without losing the security of life investments such as shelter, food, security and basic necessities. It's the turtle way though,...not the hare,...but slow and steady wins the race. |
