RE: Buying In8 Dec 2020 13:05
igm
I was tempted not to comment as investing is so risky and should be carefully weighed up as some shares are a gamble. I do not use charts as I am not sure how useful they are on small caps.
There is a lot that might be said and investing in individual shares especially on AIM which I have been doing for 4-5 years now and can be very risky. More of mine is in Investment Trusts which are more flexible than funds which I hold too. On individual shares I have tried to select sectors where there is most potential and within each to do research to find companies that have medium and longer term prospects. I started with O&G and small biotech because I couldn't find any IT's that I liked for those areas. O&G took a big hit when oil price collapsed but I had shares in Rockrose which sold out and covered my losses in other shares. I have held onto SAVE, Reabold and I3 partly because I feel they may recover and I did not want to crystalize losses. Probably the biggest mistakes I have made is selling some too early like GGP but I invested the profits in other metal explorers.
I am not a trader as such but now sell off perhaps 20% - 30% when either there is a big rise or fall UNLESS I feel it is only a short term fluctuation. However given the wild fluctuations I am increasingly trading when there is not a reason for a sudden SP change. I was fortunate to buy into Avacta and Synairgen in relatively early days so have a good paper gain on those. I also have gains on various others including Open Orphan and N4P. Latter has most risk and also a lot of potential.
ONC is my third largest after Avacta and SNG and I do not trade that but I might if the SP rises above £2.00.
My investment strategy is to identify companies that look capable of major SP uplifts often small Mcaps which are funded for the near future. I look closely at the financials and forthcoming news although many CEOs are overoptimistic and most things take longer than they announce. Some I follow for a while and buy when the SP has dropped back to a low plateau. Avoid buying on any share on a spike rise.
In the last year I have ventured into gold, copper and other metals and have had some success. My largest is BMV and I look out for companies where news is due in the coming months e.g. Goldstone. In tech areas I have EQT amongst others but I bought into that more than 2 years ago. It is now showing a good profit and more news is due.
There are many opportunities on AIM in particular right now but I also invested in a few UK companies including Capita, Just and Saga.
The last point and I could mention more is to be very careful about comments on LSE boards as some help but others are very misleading. Do as much research as you can including on financials and announcements. If you are confident in a company's prospects, keep the faith. Sometimes if unsure sell part of a holding.
What you need most is a slice of luck in timing what you do.
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