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226 Reads | 0 Comments | Posted on July 26, 2012
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Q&A with top level players from the TSX-V
Featuring: Legendary Stockhouse member jerrio78
Rapidly approaching 2 millions reads in just over 3 years time- jerrio78 is without question the most prolific Stockhouse member of all time. This last weekend Venture Profiles caught up with: the man, the myth, the legend, and number 78 was kind enough to share with us his experience along the way to the top.
Jan. 13, 2009 the Stockhouse character Jerrio78 is born, 1368 friends and 1.96M post reads later, what has Stockhouse meant to you?
I joined Stockhouse in an effort to network in the investment community and as a route to have immediate access to company profiles. Stockhouse has been the foundation of my success and investment principles. I have watched fortunes won and lost and embarked on a journey of my own self awareness through interactions on the site. I think its an excellent place to start for people who want to take charge of their own investments. I started off small and with some luck and some basics I watched my investments grow. My own success showed me what I shouldn't do and that I stumbled onto some winning stocks by chasing the wrong ideas. That same strategy would have caused me to lose it all if I didn't alter my course early on in the game.
In addition to SH you also run the very successful blog The Traders Digest. What type of traffic is the site generating and what does the site offer the average investor?
My blog The Traders Digest was an immediate hit after I started it, so much so that blogger emailed me that they were investigating me as an auto-bot since I attracted so much traffic from so many unique users, especially for a new site. What they failed to realize was that I already had the following but now had a direct site so people could see what I was tracking and investing in.
What's the best advice with regards to investing that you have ever received?
A former broker once told me not to chase after stories. Stick to good value plays and ride them out for a win. It's sound advice I have always remembered and I now see so many new investors chasing after hype stories only to get burned in the end. Don't be in a hurry to make money. Good stories take some time and once you have done your due diligence trust in your instincts and stick it through. Although you need to know when your done and run away as well. Too many traders fall in love with a story and stay until the bitter end and never end up cashing in a profit.
Have there been any SH users along the way that have had a particular impact on your success?
Over the years I have met so many strong posters on Stockhouse that I would have a pretty long list to mention. I have enjoyed being able to talk with the CEO of Stockhouse about issues and events as well. I know some people feel bashing on bullboards has become an issue but someone needs to play devils advocate for investors. It's not all blue sky and winning stories. You have to look at investments from every angle even if its done in a manner you don't prefer.
In your experience what are the three most important factors that govern share price movement?
Share price is driven by a lot of factors. I feel certain sectors run on little if no news due to a strong demand. Market optics and promotion need to be in place when it happens. You can be pouring out good news to the market but if no one has heard your story then who's really watching? As well share price moves a lot better for juniors that have not bloated up yet in their outstanding share count. A smaller 40-60 million share float offers liquidity while still maintaining a tight float that more advanced investors like to see. Lets face it if the float is big we need to eat through a lot of shares just to move up a penny or two on news and likely will retreat very fast after 48 hours.
Do you prefer to buy when the blood is running down the road, or when the train is starting to roll?
If I missed a story as it launched I watch the share price and evaluate the news. I don't like chasing the ask and will often sit on a bid well below the trading price. Some stories based on hype will only have a 72 hour shelf life so if I really want shares I don't have to wait very long. Lately good news is an opportunity for liquidation for some investors so the goal is to retain some of the traction while waiting for the next news event. By the same token I tend to sit and watch a story bleed out and don't reward sellers by placing bids. I wait until I feel the story has bottomed out then I move in my support. Unless of course I feel its now dead then I just move on and forget it. You have to take the emotion out of investing to truly succeed.
When is it time to take profit?
I constantly watch the buying and selling pressure on stocks that are running. I have been in several plays where I was up 500%-700% and started to see the sellers line up. I wasn't going to sit around and watch my profit shrink so I started selling. It's not that I lost faith I just like to lock in profit and move on and do not let greed cloud my judgement. I sell in thirds and then exit. I usually don't keep anything after I move on. I can't be bothered to track stories I have small positions in so I am usually in big or not at all. But I never go all in on any story. The most I usually have in any stock is 20% of my portfolio and that's probably too much if you ask some other traders. Bad things can happen to good companies and I may have to move out and salvage my investment and live to fight another day.
Ironically I have had emails from investors asking if I sold a stock that was up 1000% or even 3000% and that I should have called them and told them to sell as well. My response has been and always will be; if you need someone to tell you to sell when your up a couple thousand percent maybe your not suited for self-directed investing. 10-baggers are sweet but don't expect one every week.
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