Stock Trading Information Blog

During the late 90’s even monkeys could make money in the stock market. Every thing was increasing in price, particularly tech stocks. I emailed back and forth between several people and one of them was a smug man that loved to rub your nose in his profits. He borrowed $10,000 from his credit card and began dabbling in stocks.

Knowing that I’d played the market for a while, he’d email me periodically to brag about his gains under the guise of asking my advice. He had turned the $10,000 into $110,000 and wanted to know what to do.

My answer was, sell half, pay off the loan and keep the profit and the other half of the stocks working.  He didn’t pay attention and emailed me again several weeks later. “I’m up to $160,000. What should I do?”

Of course, my response was the same, sell half, pay off the loan and keep the other half of the stock working.  Again, he didn’t pay attention to me and again, I received an email. I’m up to $200,000 what should I do?” By now I simply copied and pasted my previous response.

To make a long story short, he owned primarily tech stocks that had little value except for their potential. The bubble burst and soon I got an email. “I’m bleeding. There’s red everywhere.”

I told him to sell out some, at least enough to pay for his loan and keep a profit to start again. He never took any of my advice and last I knew, he was paying off the balance of his loan from his paycheck not his profits.

What goes up, can also go down, particularly if the rise is phenomenal and it’s in the stock market.  Taking a profit is always good and you can guarantee that by selling half and letting the rest increase in price. Profits make no enemies. If you use this tip to make a profit. Remember me. I want you to succeed. Remember the more you know, the more you succeed. The more you succeed, the better I look.