One of my very first trades was FFOX. This was before the internet explosion and I was calling in my trades, but I bought this stock simply because it had dropped over 50%. I knew nothing about it and bought assuming that it would have to back up after dropping so much. The company eventually went bankrupt and I lost my entire account as I used all funds to buy it (luckily I didnt start trading with too much money, but it was a lot for me at that time of my life).
Well I feel the same way about AMD. Down 30% this month alone. There is a lot of bad news associated with this stock, but I dont think that justifies that large of a drop. This isnt Enron. This company actually produces a real product, but they've had losses for the last few quarters as they are trying to combine a company they bought (ATI) and roll out a new processor.
But I dont know the reason for the drop, but I cant help want to get in on it. At $9.34 with a volume of 21m shares, Im gonna break my rules and get in on this without much research.
Unfortunately this is often when I lose money, but I will put in a tight stop ($8.20?) to protect myself somewhat.
No comments:
Post a Comment