Friday, September 27, 2013

When a bullish article is not to be taken at face value

The moment you read a bullish article about a certain stock,  do not rush in to buy. Not all bullish articles are meant for you to make money. Many are meant to benefit only a limited number of people. You know what I mean?

Bear in mind that big boys are very powerful. They are capable of manipulating the price;  they are also capable of manipulating the news.

If you don't want to be taken for a ride, you have to be careful; you must not act in haste. Many mistakes are made because of haste.

Check the latest quarterly report; check the balance sheet; check the income statement as well as the cash-flow statement. If you see some red flags that are not highlighted in the report, then that report must be read with skepticism.

Never buy a stock without having a good look at its chart. Never buy in a downtrend, and never ever go against the market. It is much stronger than you. 

If you don't listen to me, I can't help you.