Wednesday, December 05, 2007
Price Targets
Every twenty-four hours in any financial publication you will happen the Wall Street aces giving their anticipations on many stocks. It was issued here and should travel there. It is now undervalued and is deserving that much more. Really?
Has anyone gone back to check out these
predictions? I havent, but I cognize that as a
stock additions in terms these same geniuses
go on to raise their target prices. How they
get at these cryptic numbers is beyond me.
When their terms target is reached make they ever
state you to sell? Not that I can recall. And if
it begins down make you ever hear from them again. Not hardly. They are now predicting some other
stock.
All this is done in loud voices and big
headlines. There are many grounds given as to
why XYZ will travel to $230. And maybe it will, but
when it gets there (if it does) what make I do? Not one of the Maul Street crowd ever states you
to sell.
Price targets are like doing research. Both are worthless as far as making money in the
stock market is concerned.
Here is the secret of how to do money
in one of those hot-shot stocks. First dont wage
any attention to proposed terms by any broker. They dont know. All that talking is window dressing
to get you to buy. Remember there is someone
willing to sell to you at that price.
And second you should be merchandising out close
the top (not at the top). It is not that difficult
to do, but you wont get this from your broker. Since no 1 cognizes where the top is then you
have got to allow the market action state you when to
take your profit. How? With a trailing halt loss
order.
Lets state this hummer took off from $14
and it is now $35. WOW! Should you purchase it? If the
public dealings is new and you desire to take a
opportunity then purchase it, but have got your issue strategy
in place. The mass media safety blitz for this stock states it
will travel to $90 and certain adequate it does, but it
maintains on going. It went right through its target
and is now in outer space above $150 and still
have rocket combustible to burn. Your trailing halt is
now somewhere about $125 to $135. This beauty
tops at $255 and plays around there for several
hebdomads when it begins down and hits your halt at
about $230. Arent you glad you didnt sell at
$90?
The above stock will be unidentified here, but
I did see this go on and it finally ended down at
$2.50. That is why bargain and throw should not be in
your vocabulary if you are an investor.
Price targets are there for the gullible
investors. Learn to utilize this Wall Street trick
to your advantage by using a trailing stop.
Copyright 2005