Arthur-Inherent danger in (many) replies to stock

  1. 1,781 Posts.

    It is all very well to decry the off market topics on this forum,which certainly is not going to lead to a loss of one's capital, but it a totally different thing to imply there is no danger in asking members to respond to posts on (particular) stocks.

    Those who imagine all who respond are informed and/ or have no ulterior motive, are candidates to lose some of their capital.

    There have been times when I have been in a stock and have felt the impulse to make a contribution to a thread about that stock purely to encourage others to help my position.

    Now I am not for a moment suggesting,nor do I think, you and others have such a motive in mind when you initiate a thread on a particular stock. It is however open to abuse.

    You take Solbec as an example. This is stock that should only have been traded(for reasons that have now become obvious). For months this stock was the subject of glowing appraisal from many members with hardly a single cautionary voice.

    If one was to take these threads seriously,as some no doubt do, it would give such a one enormous confidence in holding on to the stock.

    Now as a trader I did exceptionally well out of the FPO's and options but I worked on the basis of making hay while the sun shines and that there is no such thing as a certainty. I am sure there would be quite a few HCers stuck in this stock at 20+ cents simply because all the big names here were applauding the stock.

    The same with CNN (although there were more knockers) and I'm sure others could share their experiences of being stuck in stocks for the long term because of the popularity of certain stocks on this forum.

    Now maybe in the longer term some of these stocks will make it but in the meantime that money is "dead" money and likely to get even deader. (A free oxymoron)

    So Arthur the reason some of us don't respond to some of the stock posts is that we have a conscience when it comes to some one elses money. (As said R, in other words)
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.