RE: Gower/xenor7 Jan 2022 13:41
Simply to me to successfully invest in micro caps (especially on AIM) requires more finesse with entry/exits , acceptance of volatility, lots of patience and strength of personal belief.
Actually its as hard to hold onto a winner and not sell too early (if not harder) than to sell at a loss. However it's always easier if you invested off the back of your own factors and only execute a transaction based on a change in those.
It requires objectivity and as little subjective and emotionally driven decisions as possible.
There are benefits and a place to hold long, tranche in, over position, trade portions, use charts etc etc etc
It's a crazy market and it requires the ability to do all the above. While I haven't shorted I have a plan for a bear market. While I don't typically day trade I've made 100-200% gains on stocks in the same day when the stock dropped 90% and I've lost 50% in a stock in one day when it's risen 200%. Ive had 50-100 baggers (that was the hardest to deal with of them all as you just want to sell all the way
up and it's an emotional rollercoaster).
Bottom line is it's never about being right all the time or one technique. Making money over the long run requires the ability to apply multiple techniques and the self assurance to know you'll get it wrong at times and to be okay with it and not to aim for perfection and profit from every market swing.
Much more important to carefully plan your entry and exit targets and overall strategy on an individual stock basis. Then stick to it unless or until it completes or is materially changed.
Anyway just my musings
Atb