Energulf Resources Inc. ENGFF

RE: What''''s going on? Has GNZ sparked a selloff

[stargazer1]

One thing that I haven't seen anybody mention is the three day rule. I bought a stock a while ago, early in the day as it was making a strong move. I sold it two days later as it peaked and started its down move. I got a notice from my brokerage company that if I did that again, I would be banned from trading stocks. That it is against the law to sell a stock in under three days after buying it unless you are a day trader. From what I remember, to become a day trader, you needed a minimum of $25,000 plus there were numerous restrictions and so I passed on becoming a day trader. GNZ was mentioned early in the day on this board when it was up only 50%. People were excited that the results of testing the shale showed that the company was sitting on billions of barrels of oil. But what they failed to take into account was that it would take years to build the infrastructure to extract the oil from the shale. You don't just drill for it. And so even though it went on to go up over 250% on the day, it was obvious that it was a stock that would only make a big move over the long term. It will take many years to build the infrastructure to produce the oil. And taking that into account, it could be seen that the stock would start falling within a day or two, back to its previous base line price. And so, unless you were a day trader, which I doubt many of us are, if you bought any time after that 50% rise, you were almost certain to lose money. ENG is not a day trade, but even so, well before 2008 is finished we will see a price rise over 250%, and even much higher over the next few years. So this is still the best stock to be in.