Archive | 2.33

Betting on the Right Stocks

19 Oct

Sometimes you’ll hit a home run, sometimes you’ll strike out.  Know what your risk tolerance is for one particuliar stock. 

Greed got the better of me.  In my mind by holding 40,000 shares in a penny stock can reek explosive gains if it only went up by this and that.  10 cent gain = $4000; 25 cent gain = $10,000; 50 cent gain = $20,000  and so forth.  You get the picture, right?

It was a risky move by adding more shares to my position in UC Resources.  My original stake is at a mere 17% gain versus a more current pick, GIX, that went on an explosive run to 83%.  I am quite disappointed how the initial launch in UC Resources didn’t quite catch on fire.  My second and third position has basically wiped out my gain.  Patience is virtue.  This is starting to wear on me as I have watched a similar junior stock, NOT, I own go down to 43% in which I still own.  It’s quite discouraging to buy in when the stock is rising only to fall back below your buy in price.  All the glitter of a 10 cent stock can be wiped out by a marginal fall of a cent.

Choose your picks wisely.  I did miss out on golden opportunities.  Held onto losers while a runaway stock just slipped through my fingers.  Best to always minimize your losses and follow where the money is.