Best post on LSE I've ever seen12 Jan 2021 11:27
This from @Ninetails on the UJO board is absolutely spot-on and nails AIM for what it is. Well said that man!!!
"This is beginning to ring true... Alternative Investment Market is dominated by inexperienced private investors who have limited capital and tend to gamble large percentages of their savings in single potential ‘multibagger’ shares touted on bulletin boards.
participants and companies that make up the AIM have created a market that perplexes investors with baffling and unexplained price movements but keeps them coming back with the hope of getting rich quick.........................Stock Spikes
A company has just had a brilliant RNS release, the long awaited approval or contract is finally here, the share price rallies sharply – only to just as quickly tumble back down.
The real money makers with their insider tips have been and gone. These spikes occur all too often to companies listed on London’s AIM market. Similar to ‘pump and dump’ scams, these spikes draw unsuspecting investors in to sharply rallying stocks, that swiftly reverse, leaving many with loss making positions.
Of course there are bouts of profit taking along the way, be aware of the profit takers they will try and take your money time and time again.Be aware of posters who claim to hold extravagant amounts of shares in the company and boast of previous profit taking most successful investors don't BOAST, or mention profit
Extended Downtrends
One explanation for the peculiar price action in AIM stocks is that investors, who have long been sitting in losing positions, rush for the exit on the first sign of any positivity pushing prices back down.
As many stocks have been stuck is such long term downtrends, a positive update is seen by the overwhelming majority as an opportunity to cut their losses.
It’s the classic ‘I’ll get out on the next rally’.
The problem is, if everyone has the same plan a downside bias is created.
"
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