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Investing Newbie and Dennys?
posted by Michael Oakes on 1 months ago
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I'd pick a better stock like GM and if you have a limited amount of capital, don't buy
incrementally and definately don't sell incrementally! GM is at $30. You want 100
shares. If you buy it and sell it in thirds, you are spending $60 to trade the stock. If
you are looking for a 10% return, you just paid 2% of your profits just to buy it and sell
it. Would you invest in a company that just wastes money? Than don't do it yourself,
either. Pick a price, get in. Pick a preice, get out. In GM's case, we go from $31 to
$44 this year. Look at NBIX also, from $13 to $23. MONEY!

The day Cramer started pimping it, it closed at $4.58 . Wait for a day that the stock
gets slammed ( 3-5% ) through no fault of the company and buy incrementally. If you plan
on buying 100 shares, buy in increments of 25 or 33 on the way down. Think ahead of time
about a downward scale for buying and stick to it. If you don't get to your full
position, it's o.k. Do the same thing on the way up - have some expectations and create a
scale for selling around that. It takes alot of discipline, believe me.

Hello Stockpickr,
Im an 18 year old college student and just got into the whole investment scene. I
heard last night on Mad Money that Cramer loved Denny's, my question being a good
entry/exit point on the stock. Also how would I determine a good entry/exit point in the
future? Please forgive my ignorance as I am new, though all feedback is greatly
appriciated.

-Mike.

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