you have to believe in your self to make the decision, no use feeling, actually stock market is only the right time when you see the trend. try not to see the prices but how many shares you can buy in the company at the right time frame and trend. and to feel you confident do the right decision is buying stock market book and read it.
Welcome to the Stock Market, Hajon! Prepare to get knee deep in analysis, charts, and theory-crafting daily now. You will hopefully do well, Good Luck!
Out of curiosity though, what made you pick PAL as your first buy ever (other than the low price)? What was it that drew you to this one particular stock?
As for me, my first buy was 10 shares of Ford. I bought it because I wanted to feel like I was buying into Americas recovery, and wanted to own a tiny piece of that recovery. To this day years later and thousands of bought and sold stocks, I still own those very same 10 shares of Ford, sitting in their own little lot in my portfolio. I feel like even if they went to 1 penny I would keep them. Call me sentimental or something.
So, what was it that drew you to PAL out of all the different choices you had? Good Luck!
I looked for a couple weeks, and I just felt comfortable with the metals. I don't have a lot to start out with so I had to go with a stock under $1 so I looked for one that was low, but had some potential for higher gains. I realize i Bought in high at .52 and i will be more careful in the future on that. I only had $200 to start out so I figured this would be the stock to pop my cherry. I thought with the world being crazy that metals right now was a horrible bet, but i couldn't afford a bigger company right now. I am just trying to read as much as I can on here to learn.
So if you ever feel like I could learn something from what you have to say please fill me in weather it is this stock or something else I could look at. I put the $200 on this stock and am willing to hold for a little bit. Im not looking for 10x my money on this, I mean 50% would be fine with me and if it gets that high I'm sure I will sell to soon, just trying to build up little gains at a time to give me more buying power.
Hajon, IF YOU PLAN ON BUYING MORE STOCKS, you may not want to sell this one even if it drops. The risk/reward for this one is lose all $200 versus the possibility of this stock going back up to 6 or even 12 bucks, - where you would profit 2200-4600 dollars.
Now, find a bunch more stocks that have a good risk/reward like this one and get 200 dollars of each of those. Some may go to zero, but others will go much much higher, like this one MIGHT.
In the end, you should end up winning a lot more $ than you lose if you study the companies good enough before you buy them.
Good Luck and Cheers,
The problem with your strategy is that you must have the fortitude to hold all the way to $6 or $12, which is difficult and nerve racking for most investors. Many investors sell their winners far too soon after a modest gain and keep their losers far too long.
PAL has made many peaks since 2000 and crashed by 50% or more as many times, the odds of getting in anywhere near a bottom and selling anywhere near a peak is extremely low for the average investor.
Back in 2008 buying in at $4 might have looked like a great bargain, but as the present price indicates you would now be down over 80% and if you did not sell at the end of 2010 around $6-7, expecting it to go back to $12 you were out of luck. Again in 2012 when the stock was around $2-3 it might have looked like an even better bargain!
Another danger is the temptations of averaging down on a falling knife, where you can lose a significant % of your capital.
thank you for the help. The one thing I noticed with these smaller stocks which are all i can do right now is that it is hard to find info at least for me right now. I did find some on PAL, but still learning where to look for solid info and not just people saying great things to pump it up
Mining stocks are risky and speculative. To make money you must get both your entry and exit points mostly right.
It is difficult to make money in mining stocks, you chose one of the most difficult sector to start your investment career.
I would recomend you stay away from all cyclical stocks and buy ETFs unless you are willing to invest thousands of hours and many years improving your investment strategies.
You should always read the financial statements before you buy a stock. There is a risk of this company going bankrupt in the next few months. Don't think of the stock market as a casino, because that implies that everyone has the same odds of making money. Instead, it is the investors with the best information that make the most money every single time. So always ask yourself why someone else is selling when you are buying a stock, in case that person knows more than you. Good luck with your investing!