Originally Posted by DaFonz
(Post 6221362)
Think of this girl as a penny stock and a relationship as your future expected returns.
So you're cruising the OTC BB when all of a sudden, you see this one stock that looks pretty good so you think to yourself "hey, why don't I sink some money into it to see where it goes?"
You buy a couple thousand shares and wait. The next day, the stock tanks and you go "OMGWTFBBQ!" The promoter however, knows you just bought this stock, so she calls you up and says "hey, don't worry, it'll go up. Just get more shares"
Being the nice little boy that you are, you dutifully oblige. The stock goes up a couple more pennies, but you're still down.
Couple of days later the promoter calls you up again and says, "Hey don't worry, just wait a little longer. If you buy more now, then you can get even higher returns."
At this point, the promoter knows that you are a sucker, but well, you don't, so you buy more.
This cycle continues for a process of a couple of months. Occasionally, you'll see a rally that you buy into and hope rises, but those rallies are short lived. Before long, the price goes down to almost nothing. You hang on for a couple more months before you get frustrated and get out of your position.
The next day, the company announces that all outstanding shares have been acquired by a single shareholder due to synergies between them.
Lessons you should learn
- Do some due diligence first about expected returns
- set a stop loss and do not sink money when expected value is zero
- Watch out for other shareholders that can manipulate the company and take over when you least expect it.
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