Credit where it's due...27 Apr 2018 12:51
There is no doubt that Wizard rattled a few cages last year when we were all feeling the pain expecting the SP to take off and seeing consistent falls despite great news; however I for one have learned valuable lessons from those contributions that have vastly improved my overall trading success including
1) Detach emotion - look at what is actually happening & not what I'd like to or fear might happen; try to understand it rationally and then, if possible, use it to my advantage.
2) Learn technical analysis and trust it for strategic trading
3) Cut losses in a downtrend immediately... if a share is a 'keeper' then a 20% drop will enable 25% more shares to be purchased on the dip resulting in a profit from a fall without shorting.
4) Ignore FOMO (fear of missing out)... if a share takes off unexpectedly just let it go... contrary to the claims of many on BBs there are plenty of opportunities out there and it is better to miss a few and maintain overall profitability then hold where it is 'unsafe' or chase a moving target & get spiked.
5) Try to determine 'true value'... the short-term SP, especially on AIM, is based almost entirely on sentiment but over the long term will naturally gravitate towards the underlying value (NAV). Indeed I think it likely that the computer algorithms employed by Market Makers to control SP movements & facilitate liquidity are sophisticated enough to use NAV as one of their reference points as charts frequently reveal consistent 'corrections' to this effect over time. It is not always possible to get in anywhere near NAV but it gives a good idea of downside risk.
6) We all mocked Wiz for only making a 1% profit but the truth is that most people lose money on AIM and *any* profit is better than a loss... Compounding means that small gains add up very quickly - a consistent 1% profit turns �1000 into a million in less than 700 trades! ...Everyone chases the big gains but that's how most lose and consistent modest profit certainly wins the day.
7) Listen to *everyone* and judge an argument on its merits and the evidence and not on who is putting it forwards... I have learned most from so-called de-rampers & trolls and as a result adopted the mantra 'the wise learn from fools!' (not saying Wiz or anyone else is a fool of course!)
These are just a few that were directly as a result of Wizard's input. Others may not agree with them and I fully respect that - each to their own after all - but credit where it's due. It is always difficult to be under water and contrary views are often unwelcome at such times but surely the purpose of these boards is to share and as a result hopefully all benefit?
Shouts of "�1 by friday" help no-one and it is a great shame if anyone is made to feel unwelcome by reporting things 'as they see them' whether we agree or otherwise.
IMHO, DYOR, GLA etc etc
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