RE: Amazing Opportunity19 Nov 2021 23:28
"I just love this company but I will sell out when I hit my target as I have been stung a few times on the AIM market."
LordPaul - the stockmarket expression is 'cut your losses' but 'let your winners run'. You'll not do well on the stockmarket if you do the opposite. I don't mean to be trite but 'jamrock' has a point that if you liked the share at 5p - what's not to like at 2p. If you're newish to the market, it's worth taking it slower, not be in a hurry to top-up just because your share falls. There's no point averaging down if it is likely to keep going down - you need to stand back a little.
I think you've been in GDR and Hemo both of which have fallen badly - and of course we've seen MHC also fall badly. I know hindsight is a wonderful thing but whilst I don't go in for trading shares, I am seeking out small companies that I can hold on to and ride along with like Synairgen or Woodbois but if it is starting to look bad, I cut my losses like TP Group. Sometimes I find it easier to cut a loss if I think I can find a share that will progress.
Others might rubbish my comments, but if you'll forgive me, I think you're investing in the hope of landing it right on one share straight off and that takes a lot of luck just as much as research. The truth is that it rarely happens and you need to spread your investments.
You've taken a nasty hit even on MHC but there were others who were saying don't chase it up - I sold out middway and of course lost potential profit but was able to buy back in around the 2.6p mark and bought more when it fell below the 1.75p Directors own placing price. If MHC shareprice processes steadily, and if they come out with some meaningful new products, this could well be the share that will grow and grow and one to tuck away.
One other point I would make - if you have spare cash to invest - don't rush into an investment, hold back and keep eyes open for a worthwhile opportunity. You might say, cash isn't going to grow if it's not invested, but I've found that holding it in reserve, disciplines you for looking for even better investment opportunities and in time your investment expertise develops a little bit better.
All the best.