The Top Ticker on Twitter
General Electric is causing chatter on StockTwits.
Leave this collapsing conglomerate to experienced traders, this is no place for investment.
The last time I mentioned GE on this blog was here on December 02, 2008, trading around $17. “GE is a financial, mired in resistance, and in need of a bailout, I would sell the stock and buy a blender.” According to this Bloomberg report, today’ trading brought GE below $6, despite a release saying “claims that it may need to raise more capital were ‘pure speculation’.”
Companies with cratering stocks that tout their financial strength make poor investments, but there is room for day trading. Risk management is critical, and as my mother can attest, it prevents unnecessary heartache. She bought GE when Warren Buffet took a piece around $19, but upon my insistence, put in a stop loss and closed the trade at $14.
Like so many participants, she paid the price for mistaking market noise (news of Buffet’s investment) as tradeable information (price action), don’t let it happen to you.