Let’s face it. There Big Guys out there have friends. Their friends are sometimes placed to give them first hand information. That is a fact of life. Rich affluent people help each other to get the best jobs for their children, and get the juiciest deals.
LNUX VA Software stock rose 60% 5 days before reporting great results. The big guys probably knew and got even richer than before.
This particular proletarian investor typing now on his low cost portable computer lost money to the big guys who knew.
This poor guy sold its stock at 2.89$ the day before earning report to some big guy who could resell it 4$ the day after. So what? Well reporting to the SEC was a good idea.
For the future I can learn from this experience. I can avoid it happening again to me and to other proletarian investors like me. How? Simple next time:
we do not buy or sell stock when we see unstable situations. We wait until the situation stabilizes.
Why?
because when a stock moves too fast gaining or loosing more than 20% in a day it means there is someone who has more information than us, the poor. If we do not operate we will not give them the advantage of that legal (or illegal) information.
If I had waited for things to settle down I would not have given my stock to people who knew in advance about the first earnings ever by LNUX.
So proletarian investors, trade stocks only when situations are calm and stable. From now on I will. You have now idea how bad I feel for having lost my money giving it probably to horrible insider traders. It will never happen again, at least to this particular proletarian investor.
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