Before I explain the title above, I shall bring you up to date. MEO up again today by 1.1% still heading upwards but hopefully will race away again soon as there was a good wrap up in the “Australian” today. And the general public are now aware of MEO which is invariably a plus factor.

Some more information which I didn’t know was that “Santos” has a 16.9% interest in MEO and that the value of the exploration at the moment is $1.2 billion, a handy bit of pocket money and what is even better is that MEO own the whole offshore gasfield outright.

The results of the final seismic exploration are due in today or tomorrow and will show them the optimum place to commence drilling in the New Year.

One of my long termers QTK increased upwards again by 5.56% and issued some very interesting news on their future plans and the potential profits that are due in soon.

If you want to find out more for yourself, please go to www.asx.com.au where all will be revealed.

Now another long termer BQT went up by 34.6% today. As to why I don’t know!

The last announcement was the quarterly reports on 31st October which was reasonable but nothing really to crow about.

The share turnover was excellent, with buyers vastly out numbering sellers by 3 to 1 and it has bought out of the woodwork sellers at three times the current share price,with only a few offers to sell, even close to the current buying price.

So if they want to buy this share obviously they are going to have to pay for it. Interesting!

The only reason that makes any sense to me is “insider buying” Some one knows something that I don’t. So needless to say I shall be watching this one very closely tomorrow.

Now BQT was a stock that I have owned in the past around 18 months ago, and was responsible for one of my biggest losses.The loss was about 45% or in dollar terms $450.

The reason for this confession is so YOU can learn by my mistakes and it also reminds me not to get caught again. Here is the account of what eventuated.

BQT was the “flavor of the month.” It was being promoted (ramped) at a chat site which was before I went to “www.Topstocks.com.au”.
(This is a far superior,informative and ethical site to the one that I used back then.)

Everything sounded wonderful, good company annoucements came out which were blown out of all proportion.So I dived in to get some and couldn’t because every time that I put a bid in I would miss out as the share price was rising too fast ,and the information that I was getting was 20 minutes old.

This chasing the share price went on for at least an hour during which I was panicking and I was becoming frightened of missing out.

The final result was I paid top price for the stock which had risen over 50% on the opening share price that morning.

The amount that I had invested was just over $1,000. The market closed and I felt very satisfied that I had managed to buy in. All I had to do now was to sit back and wait for the enormous profits to come rolling in.

What I did not realise was that I was a “Mug Punter” who had been involved in a “Pump And Dump” There are several versions of this about, (See article in “hints and tips”) on this subject.

Next morning as soon as the market opened, I was waiting for the share price. (20 minute delay) To my horror the share price had dropped by 25% on opening . Truck loads of stock was being sold off by the profit takers who had bought in much cheaper in the days before I did.

What did I do ? ( this was the days before I knew what a stop loss was) I held on ,telling myself (conning) that it was only a correction and that the share price would start to go up again soon.

Did it? Like hell! The share price continued to recede to around a 50% loss as more stock was sold off.

Rather than sell then, as I was too scared to to take a big loss and admit to myself that I was wrong. I decided to place it in my new “Long Term” portfolio and wait till the share price went up.

It stayed there for another 6 months during which it hardly moved at all. During that time I saw opportunities come and go, by which I could have recuperated the loss quite easily had I sold. But I could not face up to the loss.

I did sell eventually, and used that loss to offset some capital gains I was fortunate to make. Just after I had plucked up courage to sell BQT it dropped down even further. So I was fortunate to get out when I did. And brother did I feel better.

The lessons learnt were:-

1. Don’t chase share prices.

2.Have a stop loss in place. (Always)

3. Most important Do Your OWN research. Don’t believe all you hear.

4. Watch out for PANIC and GREED .We all suffer from these emotions occaisonally.

5.If it sounds too good to be true it usually is.( Back to step 3.)

6.Be aware of traps in trading. There are sharks out there who are experts in pumping and dumping and eating you up and your money too.

7.Get “real time” data.You can see what is happening NOW! I personally use E-trade. But there are others equally good around.

8. Just because it looks good ,doesn’t mean it is.( go back to step 3.)

Incidentally I now own BQT again, which I bought back at a considerably lower price than what I sold them for.

But I still like the basic fundamentals of the company BUT they are definitely long term as they are an emerging company. OR am I conning myself again???

Mind you if todays rise is anything to go by ?? MMMMM !


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