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Microcap & Penny Stocks : Financial Intranet Inc. (OTC:BB:FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: FARRIS who wrote (690)	1/20/1998 6:17:00 PM
From: BlueCheap	Read Replies (3) \| Respond to of 2897

This is part of the Subject of a thread I started "Blue Cheap Stock Trading", I'm posting this as this has been my experience and some here may find this a help to them as well. Especially about what happens with quick percentage gains (RUN UPS) with these stocks and FNTN is a OTC-BB and not considered by myself to be a Blue Cheap Stock. Although I TRADE FNTN and will do so, and believe FNTN to be a great little investment for trading and maby long term also. anyway heres what I wanted to share. Many of these undervalued Blue Cheap Stocks increase 30, 40, 50, 100 percent or more as investor interest comes into these stocks because of some GREAT news,thus creating MOMENTUM BUYING. They also move up and down in greater percentage swings MORE OFTEN than do the higher priced stocks. This creates more opportunities=PROFITS. So ALWAYS consider the NUMBER of shares you OWN. BUYING & SELLING: Having already discussed the strategy of buying ONLY at or NEAR a stocks 52 week LOW, we need to now WHEN do WE SELL?? I have found two patterns which seem to hold true in MOST ALL stocks reguardless of price. They are, IF a stock RUNS up in price as much as 30, 50, 100 percent or more, this stock WILL FALL BACK. Then at what point do we SELL to recive the MOST PROFIT?? I have found that by not being GREEDY and setting a LIMIT SELL ORDER at a NICE percent of return, I usually get near the top of a RUN. You must determine to SELL all of your shares or hold a CORE position. That will be determined by circumstances or special situations surrounding a particular stock. If you feel you can sell ALL and buy it back at a lower price you have accomplished THREE major things. (1) you made a NICE PROFIT, which is the only I buy stocks. (2) you now have MORE cash to invest, back in this company or another. (3) Regardless if you buy this stock or another you have a hedge against any losses. If one does NOT set a LIMIT ORDER on some protion of the position then its very possiable to MISS a NICE PROFIT & an OPPORTUNITY. You may profit from a stock and still MISS several opportunities to PROFIT form the RUN UPS because the stock FALLS back. After a RUN most stocks Fall back quicker than they went up because of PROFIT TAKING which will produce PANIC selling. I personally try to NEVER allow a PROFIT to slip away. Every single time I have made the mistake of just HOLDING on because I believed the stock would recover and TAKE OFF AGAIN, I found that the stock just came right back down and I just LOST and OPPORTUNITY to take a PROFIT, buy back and onw MORE shares. The other PATTERN is if a stock SLOWLY and methodically moves UP, then you can continue to RAISE your LIMIT SELL ORDER. Most discount brokerages will not handle STOP LOSS ORDERS, which is used about the same way as I'm describing the use of LIMIT ORDERS. STOP LOSS orders are placed the sell a stock if it backs off to a chosen price. How ever if you are VERY closely following the stocks trading you can off course use your own MENTAL STOP LOSS and it is my opinion that you should use this important strategy along with LIMIT ORDERS. It requires MUCH more time nad if you cannot follow your stock close then, simply SET a LIMIT SELL ORDER just as soon as you have conformation that you own the stock, then go on and go fishin or what ever, because if GREAT news hits and the stock RUNS you will SELL. Don't ever condemn yourself for selling for much less than you could have, you recived a NICE return on your investment. It is my belief, created from experience, that investors LOSE FAR MORE by being GREEDY and holding on for JUST A LITTLE BIT MORE, then watching that stock fall back down to where they bought it or even below. Thats called LOST OPPORTUNITY, oh you may very well get another opportunity, but THAT OPPORTUNITY IS "GONE FOREVER". How do I decide WHAT Blue Cheap Stock to Invest IN?? I will first make a statement regarding my reasons for how I will state my opinion of the answer to that question. " I do not recive on single penny from Bill Mathews or The Cheap Investor. I am NOT compensated in any way to recomend Bill Mathews's services. Therefore, I will freely state HOW I DECIDE WHAT BLUE CHEAP STOCKS TO PURCHASE." I subscribe to The Cheap Investor & Hot-Line,I usually invest in ONLY Cheap Investor recomendations. The Cheap Investor uses FUNDAMENTAL ANALYSIS, Which I believe is the reason for The Cheap Investor's 16 years of successfully picking stocks which have had small to HUGE GAINS over about 75% of all recomendations, I know because I researched them. I have been a subscriber sence 1994 and although I did not have the financial ability to invest in all of The Cheap Investors recomendations, I have had TREMENDOUS SUCCESS. The Cheap Investor keeps me in the RIGHT stocks at the RIGHT price. I have learned that even many Cheap Investor subscribers do NOT follow the simple STRATEGIES Bill Mathews lays out, I have been GUILTY of this also because of GREED, to BUY too HIGH just to get in on the stock because it is moving, or TOO GREEDY to SELL thinking I will get just a bit more. This I'm sure, FRUSTRATES BILL MATHEWS also, like a good coach who just cannot get the player to DO IT LIKE HE TELLS HIM TO. Then as we all know, many time the player gets off and tells others how it was the COACH's fault. Eve blamed the surpent, Adam blamed Eve, and so it goes, its never our OWN fault. Here is The Cheap Investor Number if any how read this becomes interested, 847-697-5666. Bill Mathews book "Winning Big With Bargain Stocks" is also a very valuable tool in this BLUE CHEAP philosphy. I hope This in some small way will be of benefit to those who come this way. I could not help but share this because of how this STRATEGY and THE CHEAP INVESTOR Changed my entire Financial status. Here I have openly, honestly, described my experience in Blue CHEAP STOCKS, I publicly thank Bill Mathews and his CHEAP INVESTOR. Malcolm Lindsey