Today I was at work kicking myself for deciding to wait until the new year to get a less restricted investment account set up. The stock I am watching (AMWI) Was up to $1.40 a share from the $0.23 it was at when I tried to buy it initially. That is almost a 700% gain! But then at around 1:00 in the afternoon in plummeted all the way back down to $0.26 a share almost instantly. I still would have made money, but I would have been real pissed if I had have lost my 700% gain. Although, I probably would have gotten scared and sold it at about 100 or 200% Either way, it really sucks for all the people out there that had large quantities of money riding on this stock. This is a classic example of why it is important to do your research. No matter what. Even if you get the stock advice from a friend. I was talking to a man today, who's friend had tipped him off on a company called Bre-X Minerals Ltd. a while back. He bought in at just over $1.00 a share and it sky rocketed to $77.00 before he finally sold it. But it kept going up to about $200 per share and he was regretting selling. But what goes up must come down, right? Turns out the company was reporting false information to the media about their company to raise the value of it and sell all their shares in an attempt to get extremely rich. When they were finally caught the stock dropped right off the chart and millions of hard working people lost their pensions, life savings, college money, everything they had. In case you would like to read more here is a link to Wikipedia about the stock.
http://en.wikipedia.org/wiki/Bre-X
Remember: Do your due diligence and make sure you feel comfortable with your decision before buying shares of anything.
Until next time,
James
No comments:
Post a Comment