| A robot has recently been unleashed on the public at | | | | 4. Those are ones that only really skilled swing |
| large that, I believe, is still pretty much unaware of | | | | traders should go after, but not necessarily good for |
| the danger it is facing. Not, it's not a dish washing | | | | the rest of us. Certainly not good for ordinary |
| robot, silly. Those are easy to handle. Smashing one | | | | mortals that don't live for the excitement of wild |
| against a wall is all it takes to restore law and order | | | | stock fluctuations that more often than not end up in |
| in your household. Just don't mention your robot | | | | pain. |
| handling methods to your spouse and all will be just | | | | And here is a punchline: the stocks that the stock |
| fine from now on. At least with this kind of robots. | | | | trading robot has a real penchant for are even more |
| But that's not what we are talking about here. | | | | volatile. Sometimes even three or five times more, |
| This robot is much more dangerous. No, it does not | | | | meaning their betas are 10 to 15. They can be even |
| look like Godzilla, but it can still do a lot of damage to | | | | bigger. Now, what kind of crazy stocks are those? |
| your wealth if you don't know what this thing is | | | | Good question. They are penny stocks. Yes, the |
| about. | | | | stocks that your parents told you to avoid, don't you |
| The robot in question is a stock trading robot. And | | | | remember? "Don't talk to strangers and don't ever |
| the Internet is really abuzz of it. Just as you would | | | | buy penny stocks." That's what parents always tell |
| expect it to happen when all Internet marketers join | | | | their little kids. Well, at least mine did. |
| their forces to sell you something totally bogus. | | | | Yes, penny stocks are a very poor investment and a |
| Never heard of these people before? Well, while | | | | very poor trading vehicle too. Their volumes are |
| some of them are just fine, unfortunately too many | | | | usually low, which is why they can be swiftly moved |
| of them would sell you their grandma as a virgin | | | | and why they can be easily manipulated by rumors, |
| without blinking their eye. That's how talented they | | | | especially readily spread online. |
| are. And they really have to be that good in order to | | | | Trading stocks is gambling in part, whether you like it |
| sell things like this robot. | | | | or not, but there are better and worse ways to do |
| Okay, now that I warned you about it and the | | | | this. |
| people this danger is likely to arrive from, let me tell | | | | Playing with penny stocks even with a robot is not |
| you why it is such a bad idea to buy this robot thing | | | | just gambling, it's plainly dumb gambling. There are |
| even if it's only 50 bucks or so. | | | | much better, more reliable, more intelligent ways to |
| Let's start from the beta coefficient, shall we? Don't | | | | make money in stocks. It's absolutely inadvisable to |
| know what it is? Well, don't feel bad. You are not | | | | start here as this may easily lead you to wrong ideas |
| alone. The people who created the stock trading | | | | about how to trade stocks and what's worse you |
| robot most likely don't know this either and if they | | | | may end up scared and scarred by them after an |
| do, they don't have your best interest at heart. | | | | experience like that. |
| Let me thus explain this in more detail. The beta | | | | Don't fall for the spiel of slick sales pages and bogus |
| coefficient is a popular measure of stock volatility. | | | | online reviews that you are likely to come across. |
| The bigger this number is in absolute terms, and it | | | | Use common sense, get educated and you will do |
| can be both positive and negative, the bigger the | | | | much better in the stock market than the peddlers |
| stock volatility. The broad market has its beta value | | | | of this stock trading robot ever had. Or ever will. |
| set at one. Some highly volatile stocks can reach 3 or | | | | |