Don't Make The Same MistakeGeorge Made
Subscribing To Doubling Stocks: "Is Like Coming In From The Cold"
George Is A Friend Of Mine
A few years back, George Bought 100,000 shares of Pan-Am Stock, the now defunct airline, at 10 cents a share.
- Right after he bought it, there was a flurry of activity & speculation, driving the price up to 20 cents a share.
As his broker, I advised George to sell when it hit 18 cents a share. But George declined. I called him and again advised him to sell when it briefly hit 20 cents a share.
But again, George said "NO". He told me he had a feeling the activity was just getting started and that "The Stock Would Go Through The Roof Soon."
A short time later, the company filed bankruptcy and its assets were sold off piecemeal
As the price began to fall rapidly, George held on, hoping it would go back up again where he could at least break-even. It didn't happen.
Why Did This Happen To George?
George is a nice guy and a good friend. But he fell into the trap of thinking he could predict the market for Pan-Am.
Here's the thing. When George bought the stock, he had a plan. He wanted to get in and out quickly. His plan was to sell when it hit either 7 cents on the downside or 15 cents on the upside.
But the stock rose in price too fast, catching him by surprise. Then, the fatal flaws we all have to deal with kicked in:
Gut Feelings
The first emotion comes into play after we have decided which penny stock we are going to buy. It's known as "Picking The Bottom".
If the price is going up, we don't buy because we "feel it will come back down. If the price is falling, we don't buy because we are wating for it to hit bottom.
The problem: If the price is falling, we don't know where the bottom is. If it is rising, we don't know if it will ever come back down
The next emotion comes when it is time to sell
Get your emotions out of the way. Subscribe to Doubling Stocks
Greed
At what price do you sell? This hits us (as it did George) in both directions:
- If the price is rising, we get greedy and & abandon our plan. We want to squeeze out every penny we can. We want to ride it to the top and sell just before the price falls.
- The price falls but you "feel" it will come back and so you hold onto it, and once again, abandon your plan.
That is the first trap George fell into
And George Held On
Either case Leads us to the third fatal flaw:
Inertia
This is a very bad trap to fall into. We don't sell according to our plan and end up "Marrying The Stock". That is, we keep it "til death do us part." The problem is its a financial death.Geoge Married His Stock & Held Onto It Until It Died
"Follow Doubling Stocks advice and keep your emotions out of it, and you will make money"
Don't Let This Happen To You
Don't make the same mistake George made.
George learned his lesson and he hasn't abandoned his plan since.
With each Doubling Stocks pick, he knows at what price he is going to buy and at what price he is going to sell.
Once the stock he buys hits the sell signal, it's gone and he never looks back.
And yes, he has now gotten all of his money back that he lost and then some
Don't Let The Goblins Eat Your Brain
Go In With A Plan For Buying & Selling, & Stick To ItDon't Get Greedy. As my mother always said: "A Bird In The Hand Is Worth 2 In The Bush"Forget About Target Prices - They are at best: "Guestimates"Don't Look Back -Once The Deal Is Done, Move Onto The NextEmploying these simple tactics will turn your investing life around.
Don't Get Trapped By The Three Emotions
Gut FeelingsThinking we can predict the market
Inertia Marrying the stock
GreedAll of our emotions stem from greed
We Just Don't Want To Leave One Penny On The Table
DeJaVu?
Does this all sound too familiar? Feel Like You Have Been Here Before?It happens to all of us when we get into the excitement of trading penny stocks. Things just move so quickly
If you want to make money consistently, find a penny stock newsletter of your choice and subscribe to it today.
It makes a world of difference.
The newsletter I subscribe to is Doubling Stocks. They have earned my respect and my Loyalty (and they have made me a lot of money!)