RE: RE: RE: platypus29 May 2018 16:50
predders
your post. nailed it in one.
'consider selling some after a 500% gain even in whet.for 2 reasons. ..you can buy back in lower and you are giving yourself a better cash position'
that's what its all about. EVEN for the alleged.Inner circle buy low sell high buy back at lower price generating much needed cash
NOT ONLY BUT ALSO as pete and dud used to say
IF one got hooked at the top at say 30p then price falters after reaching 35p and goes into a bear trend or after 10-15% from high don't hold on. sell even taking small loss and buy in lower. don't hold on and buy more to average down ploughing even more money into what could be a black hole like fitbug or mtv etc etc
eg dealing costs of �50 to sell and buy for illustration purposes only
buy 4000 @ 30p=�1,200 plus costs �50= total cost �1,250
sell 4000 @ 26p = �1,040 less costs �50 net proceeds = �990.
buy back in when price has stopped falling say 13.5p using net proceeds of �990 less �50 =�940
�940 '@13.5p buys 6,963 shares
share recovers back to 30p
6963 shares sold @ 30p = �2,089 less costs �50 = net proceeds � 2,039 less original investment �1,250 net profit �789.
can never understand the mentality of
1 holding on to a falling share price and not cutting losses short
2 averaging down and investing even more money than one had originally planned
3 lth who chose to ignore price movement
in the case of 1 and 3 when price got back to 30p they still only had 4000 shares and were not in profit whereas the
savvy investor had 6963 shares and �789 paper profits or if sold hard cash profit of �789 in the bank
.....in the case of 2 more money was invested/risked than intended
you criticised me for being an impatient short term investor.
which of the 4 strategies above would you prefer?
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