It scares me as much as it makes me excited, and that is why I keep trying to trade it. If i have too, I'll go short against my position to soften losses. cm
See... this is why most people lose money in the markets. No guts, or no common sense. There is no get rich quick by hopping in and playing the market. You do not log into an internet forum, find 1 or 10 person offering advice and buy what they say. Odds are good they have a full basket of stocks, and only talk about 1 or 2 because it's the topic of the day, and that's IF they are a consistent winner. If they are a consistent loser, your odds are even worse. Nor are you going to find many able to share their hard fought decades experience in a 2 paragraph note. Even if willing, it can't be done. That experience comes with 'but if..", "but if... " down the line that could fill a book. And when done with that book, they'll think of another book worth of 'but if...'s' to add afterwards. You pay to play, and just like heading for a casino, and betting on the guy rolling the perfect game for an hour, at some point that guy will start losing and have a streak of bad luck too. If there are winners in the market, there necessarily have to be losers. To make money, you have to win more often than you lose, but it doesn't mean you don't ever lose. That is not possible. Bottom line, to make money, you WILL lose money. If you dont' know what you're doing, you will lose MORE money. Eventually, you will get a 'feel' for how things are going, no one indicator will give you all the answers (charts may be helpful, but they do not predict the future, or everyone would be stuck on the same chart and it would be 100% consistently wrong), and you will start winning more than losing. But in one roll, say the market crashes, you can lose everything you gained and then some. So hopefully, you aren't betting the farm, margining to the hilt, and borrowing on credit cards to learn your lessons. Because even if it takes a few years, learn them you will. Stocks like GROW can be insane money... because of the volatility, but no one can give you tic by tic advice. You have to learn when to hold em and when to fold em. And no one can tell you this, not on a forum, or in a book, or on TV, or face to face. If a $2 drop freaks you out after a $6 2 day gain... you do not need to be in this stock. You need to be in GE, CSCO, AAPL, MSFT, XOM, you get the picture. Or better yet, go for the high dividend stocks, like BGT, PCN. You have minimal price swings, and huge yields. No, you won't get rich quick, but you won't get poor quick either. GROW is not your cup of tea if you cannot afford to LOSE 1/2 the money you put into it permanently. Think of it that way when you play serious volatililty. Can I afford to lose this money because I don't need it? Because if your answer is no, you should not be playing this. Seriously, you are too scared to make the right decisions at the right times. And that means panic selling when it's down (I'm about to lose it all! GET OUT GET OUT), and greed buying when it's up (OH NO! Can't miss the boat!). THAT is what newbies do, THAT is why they consistently lose money. And THAT is why this kind of stock is what you stay away from, because you will have 2-10 panic attacks a day.
Huh? Shorting your long = selling your long. Sell the damned thing and wait for a dip to buy in again.
The name of this website is elitetrader.com not eliteinvestor.com. We dont need 3 page speeches on why we shouldnt risk our money on Grow. The nature of trading is indeed very risky. We know the risks on Grow. Some hours ago I was throwing money at a company that was accused of tax fraud. No investor in their right mind would want to do that, but a trader sees the opportunity and thats why we take these risks.
Ok, Mike. You seem to have a better handle on the risks, but lately, I've seen a few threads where new people come in and say, "how do I trade"? OMG. They have done no trading, and want to follow someone into trades. Who's going to give them tick by tick advice when TRADING? It really isn't my problem, or anyone else's, but I feel bad for some of these guys. You know the market is approaching bubble when, like real estate, total newbies show up on an internet forum asking people to tell them how to day trade or swing trade. It's similar to your grocery store checkout bragging about their brand new real estate license, because EVERYONE is getting into real estate, it's the next get rich quick (not talking about CM, he's been around for a bit). And you are right. I was just having a moment of concern, since I was talking about GROW too. I do not talk about most of my stocks, but if one gets mentioned, I sometimes comment. I feel guilty if people do poorly in it, due to their own timing issues, because I contributed to their loss by appearing to pump the stock. I definitely have spent more time talking about my losers than my winners overall for that reason. Anyway, NM.