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  • Important Tip to make profit when stock performs bad

    LDK Solar Co Ltd. .. is ready to sink......


    Hey Guys....

    We saw some ups and downs in the market in pas few days... On one side we had decent profits in Brigham Explorations (BEXP) , while on the other side in Helicos Biosciences (HLCS), price gain was 20 % up but was not as expected.

    We must learn how to make money in any type of market. The best way to learn is to do it practically. We may lose sometimes, but every time we lose, we actually learn what to avoid. For Thursday, I would like to share some precious tips with you.

    LDK Solar Co., Ltd. Issues Q3 2009 Revenue Guidance Below Analysts' Estimates.


    The gross margin is expected to be negative and the Company expects to report a net loss of $180 to $200 million in the second quarter of 2009. According to Estimates, analysts on an average were expecting the Company to report revenue of $219 million for the second quarter of 2009.

    On such a news, the stock price will open much below today's close, probably we can see upto 35 % in red. But, the price will definitely come up from its low on thursday. If it opens much in red, for the first half an hour, it may go more down, but then there will be correction in the price. Try to get in at the lowest you think it will go. You can estimate that from the news as this news can be responsible for around 30 to 35 % low or may be more.

    Eg. If the stock price is $ 10 and it went to 6 due to bad news i.e 40 % in RED.
    Now If you get in at $6/share and sell at $ 7.5, you will get clear 25 % profit but the stock at $ 7.5 is still in 25 % loss but you still have 25 % profit. This thing doesn't works for all stocks but this is special tip for stocks that have been oversold on some negative news.

    Do more research from your side as I always ask you to do. Search for all penny stocks and hot picks sites to get more information. If you work with proper planning for one year in this stock market, you may earn enough for your entire life. Do leave a comment if you have any concerns.

    God Bless,

    Be Rich.

2 comments:

  1. rufus says:

    Hi, do you think that LDK would go up again. I got in at 9.35. Do you think it's wise to hold on to it in your opinion?

  1. Anonymous says:

    its nothing to do with this article but anybody think PTZ is good buy?

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