Friday, May 08, 2009

Beware ! Are U trap into rotational PLAY


Rotational play!


It’s good to make money from stock market, all involve in stock market will make money as most of the stocks will go up, whether it’s good fundamental or badly managed losing company.


Judging from the active counters that all are penny stocks, the retail investor must be reminded of the following typical mistake :-


Typical mistake that retail investor make ->



  1. Invest in good fundamental BIG CAP stock, take profit after price went up 20%, then wait at sideline.

  2. Jump into market again when seeing the stock rally again, use the money to buy 2nd liner good fundamental stock, take profits after price went up 20%, then wait at sideline.

3. Market rally again after short consolidation, jump into market again & use all the money to invest again in PENNY stocks, this time do not care whether it’s good stock or loss making company, so long as the price look CHEAP.


WHEN MARKET EVETUALLY GO TRO CORRECTION, ALL STOCK PRICE COME DOWN, THOSE WHO HOLDING THE PENNY STOCK & NOT WELLING TO LET GO, WILL END UP HOLDING USELESS COUNTER, SUFFERED HUGE LOSES & EXIT FROM THE STOCK MARKET.

(Picture: Penang Hill, Georgetown, Penang)

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