TSX:SRU.UN - Post by User
Post by
BigBeton Mar 31, 2005 5:24pm
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Post# 8842053
Avoiding the Lemming's Effect
Avoiding the Lemming's EffectBIGBET’S PRINCIPLE:- “Avoiding the Lemming’s Effect”
Always study the situation! What are the facts? Separate rumor from reality! Separate “hearsay” from “press releases”!
When there is “panic selling” based on rumor, hearsay, or, because of a poorly understood/complicated/confusing press release, then BUY (as near to the bottom as is realistically possible)!
When there is “a buying frenzy” based on rumor, hearsay, or, because of a poorly understood/complicated/confusing press release, then SELL (as near to the top as is realistically possible)!
“Day-traders/stock manipulators” feed the rumors, whispers the hearsay and then they herd the lemmings in the resulting panic or feeding frenzy.
I learned/penned this principle after reading qbcoish’s many insightful posts and from the WYN/FAB/HYD Episode of the last 2 weeks. Today I applied the principle to Hemosol Inc. HML closed on Wednesday, 03/30/04, at $00.85 Trading was halted this morning, 03/31/04, pending a news release from the company. After very complicated news was released the Market panicked and HML fell to a low of $00.63.
After studying the release I decided that it was mostly long term “good news” so I bought at $0.67 Tomorrow and in the coming weeks we will see how valid my new principle is.