Sound Familiar? I am posting this only for an interesting perspective. Even though many of the things mentioned in this post (from an AOL board that a friend sent me) may ring a bell here, I think for the most part most of us are coming from a position of knowledge rather than from the described denial mentality described.
The poster's attitude seems to promote the idea that you only buy stocks that go up (I was doing that with CDG back in October...oops!). While that would have saved a lot of us some money over the past three months, the question of WHEN to get back in has always been the stickler.
And now the post:
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The main problem with most of the boards is their total, almost fanatic
belief that they are correct and the market is wrong. If the stock is doing
well, they tell each other what a great company they have and how it will
triple in the next month, blah, blah, blah. This doesn't really harm
anyone-----it just raises a lot of expectations that are almost never met.
The real danger in the individual message boards is when the stock begins to
fall---->herd mentality at its finest. At first the members tell each other
how it is just a small correction. "The rocket ship will soon be blasting
upward, just wait." After a significant one-day loss, the tone gets even more
emphatic. "How can the market actually be punishing this company--don't they
know its worth twice this much?" Around this time, people start
the "I doubled my position today, what a bargain" posts. You can bet you'll
find a number of posts blaming (take your pick): a) the analysts that follow
the company, b) the market-makers, and of course c) the shorts for the
recent stock performance. Also, one of the leaders of the board will call
the company and post a detailed transcript of the conversation where the CEO
states that nothing is fundamentally wrong with the company, so on, and
so forth.
This usually brings on another wave of buying by the regular members of the
message board, as they finally burn up their remaining funds, or even worse,
go on margin--throwing good money after bad on a losing proposition. By this
time, all rationality is gone (along with a good bit of money) and despair
begins to set in. However, their pride won't let them admit the mistake
they've made, cut their losses, and start looking for a better
company to invest in. "Well, I don't actually lose any money if I don't sell
so I'll just wait for the price to recover."
By the way, Heaven help any non-regular member who drops by and states the
obvious--> this stock/company sucks--and recommends people get out before any
more damage is done. I've watched people lash-out at RT, Edge, TraceBV, and
others after posting logical and rational reasons why it might be time to
begin looking to for another stock. It happens again and again--ATCT, ASND,
RMBS, BRE-X, CYMI, APM, GNT, AOL, MU, CUBE, SLOT, COMS, AMGN, OXHP,
ORCL, KLAC...
I probably speak for at least a few of us here when I say I'd buy a company
that makes plastic dog crap--as long as the stock behaves and moves up. When
things change and the stock begins acting badly I'll take my profits and move
on to the next company. If for some reason the stock begins to fall apart
immediately after I buy, I admit the mistake, sell, and take the loss before
it gets out of hand. There are thousands of other stocks, no
reason
to fight the market and ride a loser all the way down. In this game, emotion
kills.
So, to actually answer your question about posting on the individual
boards--why bother? Most of us here will "git while the gitten's good" and
move on ..and this isn't what the average board reader wants to hear. No point
arguing with them, they usually don't listen anyway.
There. That's it. I hope the above post helps someone here. I notice
even still, with lawsuits flying, denial still reigns supreme here.
Meanwhile, other stocks, which don't have the baggage of investor
uncertainty hanging over their heads, are making hefty gains. I guess if
you're not in the market to make money, its OK.
Meanwhile the rest of the world may be passing you by. I hope someone will
stop and think about all this. With so many stocks in nice uptrends, why
would you want to leave your money parked in something that has, and is,
performing badly? Hope? Hope doesn't make you any money. Stocks that are
going up NOW can make you money NOW. Its OK to be wrong once in awhile. We
all are. Cut your losses and move on.
(Sorry I don't recall the original poster's name, but it was during the first
week of March, if you want to look it up) |
