RE: Rick rule latest13 Dec 2021 15:51
o look another one that was vitually the same posted on ufo
Happyhaddock
Posted in: ROCK
Posts: 1,062
Price: 0.95
No Opinion
RE: Congrats!18 Aug 2021 14:25
I would like to re-post some potentially self evident, but often overlooked, points relevant to all junior explorers.
Mineral exploration is slow, expensive and high risk where the majority of juniors lose money. Even wealthy partners can't guarantee success. We must recognise that valuations of any explorer are all subjective and based upon the limited data available at the time; this being modified to allow for estimated probabilities surrounding future unknowns and the number of years over which projects may (or may not) unfold.
Good explorers can, and have, experienced drops of over 50% en-route to long term success, whilst some bad explorers double in price en-route to failure. An individual's judgement of a company will be biased by their own purchase price and whether they are seeking a long term investment or short term trade.
Markets don't care what you personally hope for, know or misunderstand; they are moved by how everyone else acts. Large FTSE blue chips are primarily bought and sold by institutional trading algorithms. AIM listed junior explorers tend to exhibit lower volumes of daily trades driven mainly by private investors/traders. Statistics suggest about 75% of private individuals lose money though their poor timing. As such impatience fuelled by fear, greed, margin calls, naivety or fickle narratives contributes to the unpredictable volatility of AIM companies. I have seen folk on LSE who directly compare share prices of different companies without understanding the principle of total market capitalisation. I've also encountered folk who have bought into an explorer because they believed the term diamond drilling meant they were finding diamonds. Neither imply informed investing.
Many study fundamentals which may be relevant to a share price in the long term. I do not pretend to understand how best to analyse the short term effect of irrational sentiment, nor if there is really any significant effect from so called ramping/deramping. Yet whilst we may judge those who act contrary to our own views to be wrong, they should not be ignored. Each who critically evaluates an RNS or interview may come to a different conclusion regarding how best to act upon "the facts". Few of these will also consider the behaviour of those who just skim-read an RNS's title, misunderstand its content, chase the momentum of the crowd, or instead act only on memes on Reddit, yet every purchase or sale will still contribute to moves in a share price.
The irrational will always be difficult to rationalise or predict. All the more so in the current distorted macro-economic climate of bubbles and extreme central bank interventions where market prices may bear no semblance to underlying values, potential risk or reward.
I am a patient and hopeful long term holder her