Extreme Investors

I read a lot of blogs and visit a lot of stock discussion boards, hardly ever comment because of the inevitable pissing contests with knowitall investors.

Mostly I just watch the market for unusual spikes in trading volume for particular stocks.

Today I bought ATH Athabasca Oil for that reason.

Up on the day with double the normal trading volume. It's been as high as $1.78 this year. I bought it at 0.63 cents.

Could it double frome here? Dunno. I like to buy stocks that are down with potential to get back to previous highs or at least take a profit. I sold my CLIQ for a slight gain after the stock gave up all of it's gains since it posted earnings. The market is not giving it much love and volume is drying up so I'm looking for more potential profits. I sold it and with the money bought 8000 shares of ATH.

"IF YOU DON'T TAKE A PROFIT YOU'LL TAKE A LOSS"

This is taken from a book I just read by Bob Moriarty which I need to post a review of. Love it and great book.

Why is this important? Well people just think they know everything about a particular stock they just bought. Just go visit a stock focused board and click on the symbol and join the discussion.

What I find is most are so biased they become rabid stock pumpers. Just as bad as trolls.

Here's whats important. Know what the market is doing. Gold just reached $2000 CDN for the first time. Is it on sale now? NO!

Should I take profits? Watch the volume and how the market is treating your stock. I'm up 20% on TGOD. Should I sell it? HELL YA pretty soon. I want to lock in that profit so I can protect my capital.

I also learned this listening to Phil Hellmuth the gambler. This is gambling so the advice is appropriate. He basically says that the most successful gamblers in No Limit hold'em poker are those who cash in a little bit each tournament.

Hear that? He didn't say WIN. He said cash in. So you play smart and make the top 64 or whatever you need to get there. Just play smart enough to get there.

You have to cash in when you can. TGOD announces earnings today and we'll see the reaction. I will take my money and run.

Too many buy more when stocks they bought go down. I never ever average down on my trading stocks NEVER!

People become married to stocks. To win, cut losses when you're wrong and cash in when you're right. Just like a poker player does. They fold when they suspect they're beat.

For the record I don't go to casinos and gamble. If I was rich well maybe.

The extreme investors you see never sell. How do you make money trading stocks doing that? How would you win at poker with that mindset. Focus on taking profits and buy when they're down.

The dumb money buys stocks at the top. The smart money sells. 

I like to buy at the bottom, that's the smart thing to do.

This is why energy and weed stocks are starting to move up and gold stocks will be heading lower. I am not doing this for long term holds.

This is trading and gambling. Know the risks and always take your profits and move on. Never hang on to losing stocks hoping they go back up.

Extreme thinking will get you killed. Develop you're own strategy for making money in stocks.

Update: TGOD announced earnings. Loss of $16M and a revenue increase of 20% or $2.5M. I'll wait and see how the market reacts but I don't like the losses although expected. Long term who knows, but that's not what I count on.