Buying Stocks Under $15 Is Risky

Q: Stocks under $15 have some pretty volatile movements....up 20% one day, down 20% the next depending on whether there is short covering un upcoming good news or just straight shorting like yesterday with the geithner flop. 1) Except a run up in the week ahead of the next geithner speech and get out when he actually speaks. Lets just hope he gives some details next time. 2) In the bear market, be defensive because 20% of your savings in one day can make you do some crazy gambling things in the market. 3) Always use the gap rules and only buy if the stock goes 10 cents above the high in the first hour of trading. If it goes .10 below the low of the first hour of trading, then short the stock. Always, always set a predefined tolerance for loss and do not be afraid to step away. If a stock breaches a previous bottom by 10 cents, do not be afraid to cut your losses. 4) Never ever put all your eggs in one basket. Never put more than 1% of your portfolio in an individual stock like this. Dont get greedy. The best traders are always on the defensive. 5) Keep a close eye on positions daily and do not add to a position on a new bottom. Add only on new highs.

A: there's a really good chance you are gonna die first before a company like "General Electric ($11.80)" files a bankruptcy. also, best thing to do in a bear market is "not to invest in stock." Yep sure, Buying Intel, Texas Instrunments, Nvidia, General Electric.......etc, etc ....it's all risky eh idiot. The whole world is going to change and suddenly we're not going to use chips or silicone or electricity anymore, everything is going to run on magic dust imported from space. Pri, you are an absolute idiot. period. You're completly wrong. The magic dust will be imported from China and may contain lead.

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