RE: Zak Mir weekend bulletin board TA - 38p27 Jun 2021 23:06
Wyn, I don't know if you have invested in oil of gas exploration and miners companies before HE1, but I guess you must have so you are aware that at every stage of the "life cycle" of each of these types of companies the share price will tend to fluctuate. For example. mining companies ( https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/ ) where the share price will accompany the ups and downs respective to each stage. I am sure one can buy and sell the company by observing each stage without charts, right?
For oil and gas exploration companies, more or less, there are stages from IPO to the first drill where experienced investors may buy at very low entry prices and trade just before spudding when the price usually tends to drop, etc.. we discussed the cycle here a little while back.
At all these stages we find different types of investors, those who are traders and have higher risk aversion and will indeed look at TA so they exit before the results, very focused on the charts, and we those who have focused on the "heavy load work of research" and dug up all the information out there on the aspects of mined minerals, the geology, management, cash, social/geopolitical issues, infrastructure issues, etc.. and will try to buy as early as possible and only if most of the aspects they researched tick all the boxes.
You can say it is much riskier to rely on FA alone instead of TA and at the end of the day we are "gambling here" as this is still an exploration company and you are correct to a point as you can say this is a "binary situation", right?
Of course, you will think like that as all you look for here are signs from charts and investors emotional tendencies and discuss about them, which it is fine for some. I cannot recall one single post from you that has enlighten me on the geology of the field, for instance, which could help me, or others to better understand our chances of success.
Now, you can say, "I am not a geologist so I will not try to guess what it all mean", which is fair, however, apart from a few here with actual experience in the fields of mining, oil and gas, scientists, geologists, engineers, we have a lot of educated folk who have done their homework to educate themselves and use that knowledge to make the "binary" aspect less binary. The more you understand the all the fundamental aspect of the company you invest the less binary it becomes and less of a "gamble" it becomes, as no one wants to gamble here, so you educate yourself and by doing so, the less important the chart becomes. That's why I think Fundamentals beyond FA is far more valuable for me.
I wonder if you, or many of the others, would still be invested here still if all the BB members were only discussing the HE1 technical analysis (TA)? I can guarantee you that I wouldn't be invested here as everyone would be watching their backs and the share price would possibly be dead as everyone would look at it the sa
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