posted
FREESHARE are shares that have been purchased, then a partial position sold for enough money to cover all of original expense for all shares purchased(excluding tax).In effect you have created a LONG position at no risk. This works nicely for companys you REALLY like and think will prosper. I trade in higher priced stocks, but have used pennys for this purpose. So far have 1000shares of BLYC,MXES,QBID,MXES,RSCA, and 1.5m CMKX; working on THTHF, CTKH,TSRG. VAN
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
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posted
I asked this before when someone brought this up but didn't get an answer. Is it considered free shares if you purchase some shares and then sell your position and then on the next dip, re-invest the money to better your position?
You buy 100000 shares @ .01 which = $1000 Stock goes up to .015 You now have $1500 worth of stock On the dip back to .01, you then buy 150000 shares which = $1500
In essence you have invested profit that you made and upped your position by 50000 shares but you still really only invested 1000 bucks of your own money.
If I am wrong, I envy some of those people who say they have millions upon millions of free shares of different stock and it could go up to .10 to .20 and beyond. WOW.
posted
JIMBO NO Free shares must be held long. If you reinvest or hold cash you have changed the original set of decision making data. In your example you have introduced 100% risk on those shares that would have been free (No risk) VAN
[This message has been edited by VNGNTN1 (edited June 03, 2004).]
[This message has been edited by VNGNTN1 (edited June 03, 2004).]
Posts: 1424 | From: Peoria, IL. USA | Registered: Oct 2003
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is $1.05 a share it's pretty basic but when I first started trading I'd actually shrink the value of my portfolio a bit when I sold portions of some accummulated positions when they didnt move as fast as I had thought and needed to free up some cash.
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