Buy Low Sell High
Here is a little bit of free advice to those of you who like to dabble in the stocks from China.
1. If a stock costs you $1.00 and it goes up to $1.10, SELL! That is a 10% gain. If you hold out until it hits $1.20 you may find yourself holding a stock no one wants to buy, except at a lower price.
2. If you see a stock from China rocket up and then sit at the elevated price point for longer than 10 minutes, SELL! Once the momentum slows down the stock is only going to go one way, down.
3. If you are holding a stock from China on a Friday afternoon after 2:00PM that has been going up, SELL! Many people are looking to cash out for the weekend. Sell while it is high and then buy it again after 3:20PM when it is cheap again.
These tips come from my own personal experiences. Just the other day I bought a China stock for $1.80 after seeing it jump from $1.20 earlier in the week. I watched it hit $2.50 and I was thinking that it would continue to rise. After five minutes of no movement I decided to go ahead and sell it. Between placing the sell order and making the sale the stock had dropped to $2.08. I was holding a little over 40,000 shares, you do the math.
I did buy it back an hour later for $2.05 and it is currently back up to $2.25 but I still lost out on $10K in potential profit by not following my instincts and selling the stock when it went stale.
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