Do you follow your gut feelings?

Question

Yesterday, when the stock market was still open and while reviewing several stock options available, I came across an unheard of stock, did the background research into it and then decided to invest a considerable amount of money into it because I sincerely felt it would "hit pay dirt"., Today, I checked the stock market and I was correct, the stock increased $3.50 per share and I earned $603,000.00 profit, on a hunch.

Providing you do the research or your "homework" on a particular stock, would you, as an investor consider taking such a dangerous financial risk, yourself?

.And, this is not the first time I have done this, using such tactics, I have built up a portfolio of $5M in less than 19 business days.

Can anyone give me some strong investor tips on what is considered Do's and Don'ts in the investing of stocks?

Thank you

Answer 1

Have you heard of 'beginner's luck'? It is thus named because after you lose your entire $5 M (which will happen soon enough if you continue to trust your gut feelings!) you will either leave the market or you will become a veteran who will win some and lose some.

Have you also heard of 'quit while you're ahead'? Sell the stocks and put the money in a bank term deposit. Use some of the interest earnings to build up a good library of investment books and learn all about fundamental and technical analysis. A list of books I have found useful are listed in my investments blog (http://investmentsfordummieslikeme.blogs...

Answer 2

That's nothing.  I start with one dollar and in 10 days I was a billionaire.  I don't use gut feelings, I use butt feelings.  If I get this certain feel in my butt, I know to buy.