| A trading mania is when your grandma calls you with | | | | don't want to join them. |
| a hot penny stock pick. It's when a huge crowd of | | | | Instead of the media reporting on the latest 'hot |
| investors jumps into the same thing at once. You | | | | sector', they should really be reporting that, 'the |
| probably know a friend or co-worker who continually | | | | sector was hot, you missed it!' |
| tries to get involved with the latest hot sector, but | | | | Now, how is this going to help you find your penny |
| you never see them making any money. | | | | stock picks? Because, like the first two perceptual |
| There is a lag time of several months between when | | | | trends, trading manias go both ways. |
| you should first get involved in a sector, and when | | | | When the newspaper and the financial channel and |
| you start seeing stories in the media about how it is | | | | your broker and your neighbor all tell you to avoid |
| the latest hot sector. | | | | the same company or investment, take a good look |
| The point is that if you are hearing a lot about how | | | | at buying shares. A negative mania is the best way |
| hot nanotech penny stocks are, or how well gold is | | | | to identify a low-tide point. There is a good chance |
| doing, or that fuel cells are the next big thing, you | | | | that there won't be much more downside in the |
| are already many months too late. | | | | share price, when perceptions are at their absolute |
| Guess what happened in those months before you | | | | low. |
| heard about the new hot sector. The prices of | | | | When buying penny stocks, you don't want to buy |
| shares inflated and inflated, and now you are at risk | | | | what everyone else wants - you want to buy what |
| of being in a crowd of investors lined up to fight with | | | | no one else wants. |
| each other for the right to pay way too much. You | | | | |