Wow! Here’s something you don’t want to see the day you buy a stock — a huge drop in price in high volume! Two days ago I purchased shares of a shipping company.  The sector looks like it’s doing pretty well, and I picked what looked like the best of the bunch.  It had about 35% institutional ownership (according to MSN Money) and was ranked highly by IBD.  I checked the charts and it was definitely well-extended from a decent buying point, so I knew I was taking a risk (like leaving a couple grand in a money market that gets eaten by inflation isn’t a risk in and of itself!).  Sure enough, the order went through first thing next morning, and the stock got crushed during the day. 

     Lucky for me I’m not prone to panic, because it went up on high volume the next day!

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