Thursday, September 15, 2005

Trading bankruptcies is pure speculation

Important Note: Class A shares of companies that go bankrupt are almost always worth NOTHING. So remember that if you are trading NWAC tomorrow, you HAVE to trade with tight stops. The gains are big but this is pure speculation. I wouldn't call it all luck - cause Hedge funds almost always make money on this.

Buying their bonds of course can be valuable when they are rated to junk. Specially airlines.

No comments: