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What is the riskiest stock investment right now?


What is the riskiest stock investment right now?

To do successful trades, you have to have your own set of trading rules.

I'm going to share with you some of my trading rules.

I can tell you 70+ members of our trading group can't be wrong. We follow our own sets of trading rules. Whether or not you'll use them is another matter. I'll also include some trading sayings.

A] "On Wall Street there aren't any gifts."
No one gives anyone else anything - not even stock tips.

B] Bulls [Buyers] earn money.
Bears [Sellers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. they lose the money in their trading accounts.

C] Here's what no one in the trading won't do:
1] We WILL NOT trade "cheap" [inexpensive] stocks. We will not trade .BB [dot BB, which is the Bulletin Board],
.PK [dot PK, which is the Pink Sheet]
O-T-C [Over-the-Counter].
The above stocks are far too risky and volatile.
2] We WILL NOT trade any stock which trades less than $26.51 per share. We do not want to be part of any "pity party".
3] We WILL NOT trade any stock which has less than 400,000 shares/volume per day. Volume less than this makes the stock too risky and volatile for the retail trader. Those traders with deeper pockets [having more money] can trade stocks with less volume.
4] We WILL NOT trade any IPOs [Initial Public Offerings]. These stocks do not have any history to follow. They are far too risky.
5] We WILL NOT trade any stock with less than 18 months of trading history.
6] We WILL NOT trade against the trend.
7a] We WILL NOT trade any stock betwen the price of $45.01 to $55.51 up OR down. Stocks in this range are known as "the doldrums" - they have a tendency to get stuck and not move.
7b] We WILL NOT trade any stock from $73.01 to $76.51 another "doldrum range".
7c] We WILL NOT trade any stock from $94.01 to $106.51 - yet another "doldrum range".

D1] When we do our research, we check the following: The Earnings Announcement Date. This happens 4 times each year, about every 3 months. Different stocks have different EADs.
D2] We check for stock splits.
D3] We check the sector and the industry. We check for the trend in that stock's sector.
D4] We ALWAYS check the news for each stock.

F] When ALL the criteria and rules are met, Plan your trade. THEN trade your plan.
When you know the proper strategies, know how to use them AND you follow your rules, you can earn money when the stock goes up.
You can earn money when the stock goes down,
You can earn money when the stock goes sideways.
USUALLY numbers in the stock market are expressed in percentages and in dollars and cents.
Here's an example:
ABC is currently at $27.50 per share.
You did your investigating and research. This stock passed ALL your rules.
You have your entry at $27.78 or 1% to prove the stock's trend.
Your target is $30.56 or 10%
IF the trade should go against you and you lose money, you will get out of the trade at $25.56 or 8%. This is so you can trade another day.

As a foot note: We DO NOT put any more than 15% of our total trading account balance in any one trade. If our balance is $10,000 we do not put any more than $1,500 into any trade. Our entry is $27,78. We can buy 50 shares of ABC. For some reason or another, brokerrs and others like rounded off numbers of shares.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to this free site, recognized by Y! A as a "Featured Knowledge Partner":
http://investopedia.com

Investopedia also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with your own hard-earned money.

http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

yahoo because maybe bought by Microsoft

Penny stocks are always the most risky. They have very low volume, and trade almost entirely on speculation.

Riskiest stocks are stocks which have run up too much too fast. Such stocks can be defined as trading around 20 to 30% above their 20 day moving averages. It is best to avoid such stocks.

Yahoo!

Tags
  Vanguard Fund   Value Investment   Trust Investment   Stock Investment   startup Investments   Startup Capital   Sector Fund   Seed Money
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