tjkrid17:Hello - I am new at this - and I am not doing so good right now - even tho, I do believe in
some of my LOSING stocks, so I will hold onto them - as I am losing TOO much now - I will
wait for them to come back up - BUT THAT IS MY QUESTION - now they are going DOWN< DOWN>
DOWN. Almost to nothing. What does happen to them? Do they eventually go to nothing, or do
they eventually come up. I guess I need to learn about that STOP thing, so I don't lose EVERYTHING!
I would appreciate ANY HELP. THANKS!
You've got to start reading books by Benjamin Graham. You also have to learn how to read a balance sheet and cash-flow statement such that you can decipher whether it is a beaten up stock or a beaten up company. Most of all, you need to know how to read a 10-K.
When stocks go down, it can be a good thing. I don't like penny stocks because they are highly volatile and you don't know what you're getting (in most cases). In order to be able to evaluate a stock, I think it needs to be registered with an exchange and not be on the OTCBB or pink-sheets unless a 10-K is available which usually exists on the company's website.
I've lost chalk-loads of money on certain stocks too; it happens. Some stocks are truly losers, while some stocks are hit hard because of the sector their in. There was one stock that I invested about $100 in that I sold immediately when it lost 40%. On the other hand, there was a stock that I've held when it lost 45% of its value. It is all company-specific and without the ability to evaluate companies, your merely guessing that the company will recover.
For instance, I had been predicting that VMWare since the 1/3 drop in price was an excellent company to buy. In contrast, last year, it was a terrible stock to buy. What happened? This year it received a large influx of cash from its operations. When that happens, it eliminates the guessing.
Aqua