HERE WE GO AGAIN23 Feb 2021 10:13
Every time we get a rise in the SP it retreats, to 7p 8.5p etc
Problem is that once the SP stops rising people know it will usually retreat up to 30% and by selling they will make money buying back in again at a lower price.
Selling at 14.5p, then paying 12.5 will reduce their average down by about 15% in cash or they more more shares with the money they made. Even if it drops lower than what you have just paid, their average has still been reduced. So if they have done that each time it has gone up they have probably finished up with an average of 4-5p. This of course is just an estimate and assuming you sold at the right time. The point I am making is simply by selling once the SP stops rising you will generally be able to buy back at a decent discount to the price you sold at.
BUT, and this is the snag, if once you have sold and not bought back in while waiting for the drop, a massive RNS hits the screen with terrific news (think that is the one some unnamed person's on here have been promising for a few years) you will be well out of pocket, so instead of it dropping up to 30% it puts on 45% with the RNS and goes up to 20p The canny ones who try and cover this possibility only sell half of their holding so they will gain on the rise with half their holding, reducing their possible loss. As for us if we sold at the top the RNS would appear with us out in the cold!!!
We now need a little bit of good news to prop the SP up, it may arrive Friday but which Friday is the question. So we are back to our patience game. At least we are showing a profit at the moment.