I think many people have piled into these type stocks are not prepared fr the volatility which has been mild so far. I was invested in this company CFSG when the Sharesleuth story came out and the stoc lost about 65% before I even knew what was going on.

If person can't handle a 65% to 80% loss in a instant in these type stocks then you don't need to be in these type names. People that have huge sums piled into these names will eventually be burned if they stay in the game too long with them.

I actually made a profit on CFSG but it was only after I lost 65% and lived through this:

http://www.elitetrader.com/vb/showthread.php?threadid=120801...


These type of stocks are many times speculative and unless you have a very special insight into them then I regard big investments in them as a "Hail Mary" pass.

Do "Hail Mary" passes sometimes work? Why yes, sometimes they do.....but it has been my experience that when TMF sometimes recommends risky plays and the stock pick does not work out, people will come on here whining and crying about "How come you guys did not see this?".

Such people tend to like to do a whole lot of Monday Morning Quarterbacking. If and when one of these stocks blow up and the inevitable Monday Morning Quarterbacks come on, I am going to treat them like grilled meat and eat their lunch.

These stocks are risky...only put as much in as you feel you can lose.



Starrob