Hi. I bought CRNT at 20.5 (Yes 20.5). My first stock buy is a disaster. I have lost so much money i had saved for a couple of months. Please offer any advice and tell me why this stock went down. Atleast I should be able to learn from this experience. I saw it on IBD and it looked like a good pick. Is IBD a good source? Please help. Please help. Any helpful hints for this stock or future trading will be good. Give me pointers i want to learn.
Thanks...I hope it goes up.
I have been here since $3.50 in 2003. It has been up and down since. Look at all the fundamentals, look at the industry and technology and future demand.I bet the past few days have been harder on me than you. I lost 40k today alone on paper. What matters is 10/22. That is when the "rubber meets the road". You sound like a fine person. Best of luck, but I was here at $3.50,,,,still here today and I believe I will be here in 2010...
Well put magalo55. True mark of a smart investor. I sold out all of mine at 19 but am looking to get some at a lower price to hold long term. And I would have held long term the last time around except with the dilution, I figured the stock would take a short term dip and so an opportunity to buy more at a lower price. But I agree with magalo...this is a strong company with an amazing growth potential so far.
Live and learn. We've all lost money on trades. My first, and worst, stock purchase ever went down 45% a week after I bought it.
What you did wrong:
1) You bought a company without knowing anything about it.
2)You bought with only one reason- a newspaper/newsletter recommendation. Don't ever buy something based only on some newsletter's recommendation. Use them as a tool only.
3) You don't have a system of your own to evaluate stocks. You have to go read some books, a lot of books. Then you can have a base of knowledge to evaluate why something went wrong and why they went right.
4) In the future you should be able to tell a 1 minute story about why you're buying a company. It should include a little about the company, its future, the industry, its past, the valuation, and the price, technical indicators and fundamental analysis. If you can't do this for each pick, go play blackjack.
That's not right. If you are a small investor you cannot tell me that you haven't lost money in past trades. Everyone including professionals lose money day in and out.
Original poster has right attitude, you need to stay focused and learn from your own mistakes. Someone said, 'Good things come to those who persist...'
It's not easy making money in stock market, but if you do your dd and work at it good things will come.
It's a great comapny and you will get your money back. Your buy point was high - the track record for this stock is half the month it goes up and the other half it goes down. The moving average keeps moving in the right direction - so you have nothing to really worry about. Sell when you make up your losses and buy again at the next dip.
I'm Long at 18.90 waiting for it to hit 14's to buy more.
IBD 100 is a guide, it never meant to be a straight buy list. IBD might saw that it would set new high and break out of db base, but if you look at the chart you will clearly noticed that bp was in the upper half of the trend line. You need to do your due dilligence, and base on your research you need to balance risk vs profit analysis. Identifying a base is one thing, but there is more to reading a chart.