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The Stock Market Is Not The Place To Gamble (DOC download)

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					Title:
The Stock Market Is Not The Place To Gamble!

Word Count:
744

Summary:
Dear Fellow Investor.

For several weeks now the stock markets have been in a very good shape
right around the globe which must be a very soothing feeling especially
for those that are still licking their wounds having to cope with losses.

But there’s a flip side to this positive global atmosphere. And that side
is pretty dark especially for newbies. What I mean is that more than ever
people are being bombarded with investment recommendations that resemble
gambling more ...


Keywords:
investing for beginners,investing online for beginners,investing in
stocks for beginners


Article Body:
Dear Fellow Investor.

For several weeks now the stock markets have been in a very good shape
right around the globe which must be a very soothing feeling especially
for those that are still licking their wounds having to cope with losses.

But there’s a flip side to this positive global atmosphere. And that side
is pretty dark especially for newbies. What I mean is that more than ever
people are being bombarded with investment recommendations that resemble
gambling more than anything else! These stock recommendations have
absolutely nothing to do with a serious and thoughtful investment.

On October 6, 2006 I wrote a newsletter article about this topic. You can
view this article by clicking on
http://www.stockbreakthroughs.com/Newsletters/otc.htm

Not only several renowned newsletters are trying to draw investors into
buying stocks that will allegedly double and tripple within days, but
also spam emails are infesting the inboxes of many email accounts. I get
hundreds of these emails every week that promise profits that are from
another galaxy and beyond our imagination.

These newsletters and email spams recommend stocks that most of us have
never even heard of.and in many cases we don’t even know how to pronounce
the company’s name.

It makes my stomach turn when I read the recommendations of these
“carnival barkers” because I know that, unfortunately, they will find
common ground with a lot of beginners.
Attracted by the possibility (no matter how minute) of fast and huge
profits, they will even charge at stocks that only cost a few cents – so
called penny stocks – believing that one can’t lose much with these cheap
stocks. WRONG!!! That’s a fallacy!

If a 10 cent stock drops to 1 cent it’s still a 90% loss no matter what!
And that can happen easily! It sometimes goes faster than one expects
because more often than not some dubious organisation is manipulating
these kind of stocks. They buy them dirt cheap and then create a hype
hoping and expecting that many investors will buy these allegedly “highly
profitable” stocks not wanting to miss the boat.

And there are enough buyers that will fall for these tricks. This will
then cause the stock price to go up and up, and as more people see this
stock rise and shine even more will buy in fear of missing their big and
fat chance, making the stock go up even further.

OK. Now this obviously sound good. That’s what we’re looking for. A
rising stock. But before you know it, these shady organisations then sell
these stocks as fast as possible cashing in the big bucks. This sell-off
will cause the stock to drop significantly and before you catch wind of
it your stock is basically worthless and your money is gone.

The peril here is that these stocks are OTC stocks. I also wrote an
article about this topic. You can view it under:
http://www.stockbreakthroughs.com/articles/otc.htm

Very few OTC stocks are successful in making the jump from this market to
the NASDAQ, NYSE or any other major exchange due to their INABILITY to
meet the listing requirements of the major exchanges.

These kind of securities are very risky because there's no controling
body or organisation like the SEC which oversees the securities industry
and promotes full disclosure in order to protect the investing public
against malpractices. That's why you should be very wary of OTC stocks
because they are either penny stocks or hold bad credit records.

I will never understand what makes people invest thousands of bucks in
siberian uranium mines, chinese energy stocks or even an australian
internet casino. Yes! You read correctly! You’ll be surprised what
investments people come with.

And the same people will spend weeks and months paging through brochures
and magazines when it comes to buying a new car or the latest plasma TV
set. They’ll make comparisons, they’ll ask friends and relatives and go
through all kinds of troubles just to get the real deal.

So why don’t they apply the same scrutiny when it comes to investing
thousands of bucks in the stock market instead of using hunches and guess
work rather than the brain???
Your hard earned money shouldn’t just be gambled away. It should be
invested wisely and with scrutiny. That’s the only safe way to accumulate
real financial wealth!

Yours in Successful Trading

Ricky Schmidt

				
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