I invested in an IPO on my first decent profit. I got 24 shares and 24 Warrants. Held them for over a month with no clear indication of a direction and finally, one morning, I had to do a double-take when I opened my portfolio. The Warrants, that were only worth $0.45/piece the previous day shot up to $4 00/piece, while the stock was only worth $8.00/piece. I was a little confused at first, then realized I could sell the Warrants just like a stock, so I unloaded the Warrants while the stock creeped up slowly. I ended up selling all the Warrants for more than the stock was worth! Ended the day with a $425 profit between the stocks and Warrants. The following day, the stock & Warrants tanked, so I realized I made a good decision. Less than 1 year later, the company went belly-up and people got stuck with worthless stocks & Warrants. I just got lucky, had nothing to do with research or company dynamics, just pure dumb-luck! I needed the Win because most of my trades prior to this one lost money and I now realize how impatient I was, but lucky with the trade, at the same time. Now I use more research and fundamentals for choosing stocks and when to buy/sell, but it's such a learning curve that sometimes you just need the dumb-luck trade to keep you going and interested in learning more! I'm glad I stuck with it. I still lose money here & there, but it's all part of the learning curve, of which I am still not the best at, but the more you keep at something, the better you fet at it!!
Held them for over a month with no clear indication of a direction and finally, one morning, I had to do a double-take when I opened my portfolio. The Warrants, that were only worth $0.45/piece the previous day shot up to $4 00/piece, while the stock was only worth $8.00/piece. I was a little confused at first, then realized I could sell the Warrants just like a stock, so I unloaded the Warrants while the stock creeped up slowly. I ended up selling all the Warrants for more than the stock was worth! Ended the day with a $425 profit between the stocks and Warrants. The following day, the stock & Warrants tanked, so I realized I made a good decision. Less than 1 year later, the company went belly-up and people got stuck with worthless stocks & Warrants.
I just got lucky, had nothing to do with research or company dynamics, just pure dumb-luck! I needed the Win because most of my trades prior to this one lost money and I now realize how impatient I was, but lucky with the trade, at the same time. Now I use more research and fundamentals for choosing stocks and when to buy/sell, but it's such a learning curve that sometimes you just need the dumb-luck trade to keep you going and interested in learning more! I'm glad I stuck with it. I still lose money here & there, but it's all part of the learning curve, of which I am still not the best at, but the more you keep at something, the better you fet at it!!