The Faraj List of Exploding Stock-Part 5.06

Bgginers and Freshers to this Thread!!

Firstly and mostly, welcome to this thread where you can find an enormous amount of useful information published daily by enthusiasts. we hope to see you join this group in sprit and nature and look forwards for your continued interest and hopefully contribution in the future. Take your time, there is no rush!

Problems may arise with new but experienced members. Some such members appear to assume, mostly perhaps unawaredly, that their's approach is the only correct one and should prevail. Such individuals often do not take kindly to comments from others seeing such comments as an insult to their intelligence and knowledge, or at least derogatory in nature and intentions.

Many schools of thoughts exist in this market among traders. Each school has its own logic and work well within certain parameters. no single school is the only correct one though!! it is understandable that someone who had traded in a certain fashion and seen his approach to have worked well under certain circumstances may find comments from others unsavory.

In the circumstances, i wish to introduce a starter grade of membership. starter member are advised as follows:

Starter member may be an experienced or not so experience. He or she, however are expected to abide by the following for an initial period of one month:

- To deal with highly volatile stock, such as the ones this thread specializes in, you ought to have had a background of trading and studying of some 2 years.

- Do much reading and observing in this thread and little in terms of posting initially. Many members would have followed such an approach naturally. During your initial exposure to this thread try and avoid deep interactions with other members, certainly head on collusions should be avoided, no matter how justifiable your cause may appeared to you.

- Try not to impress the others and always back up your assertions with fundamental or technical analysis and news. 'the next 10 bagger', 'this stock is doomed', are sensational statements, but empty statements which are likely to cause friction unless backed up by technical or fundamental analysis and data or both. on the whole try and avoid searching for the 10 baggers, you will do better in the long run this way!! Concentrate on trading correctly and one day you may hit that illusive 10 bagger or the stock that rises by over 100% on one day. We have done it on this thread. PET rose 185% intraday last year!!

- Start with bigger cap stock, such as FTSE 250 stock and avoid the penny shares, at least apportion most of your investment accordingly! Bigger stock lend themselves in a much better way to technical analysis and have much more fundamental data and news published about them.

- Warren Buffit, the guru of investors only manages some 22% per anum average rises on his portfolio. The reason why he is considered the guru is that he managed a steady stream of average 22% per annum rises over many years! What matters is how much your portfolio appreciates by year on year.

- You may have or hold a pet stock, quite understandably. Do not however get too emotional about any stock, this can loose you money and cause friction with others whom may not hold the same view as yours!

- A good knowledge of technical analysis is a must before you can trade volatile stock. Volatile stock move too fast when they do.

- Fundamental analysis is important too, particularly when combined with technical analysis.

- Try to understand the basics of stocks that have attracted your attention. Know the full name of the stock, the sector it falls within and the index perhaps, market cap, profit/loss..etc

- Avoid rubbishing the ideas of others. You never know, their's may prevail in the end. You may robustly argue your case without rubbishing the others!