MMs explained by Co ckney - specifically AB2 Mar 2025 11:38
audioboom, boom was the first of my one-baggers in 2025 having risen 65% since the start of the year. the stock has had a small pull back, as it has done a couple of times this month in its charge north. nothing goes up in a straight line, there’s always short periods of profit taking, as there was from £2 to £22 from nov 20 over 14 months. past charts are always worth referring back to imo.
i put a special substack out purely on audioboom one-bagging and my reasons for holding it last week, if you are new here and missed it it’s here:
https://****neyrebel.substack.com/p/audioboom-boom
it’s always good to reassess on a one-bagging imo. i’ve not sold any, i have added in actually fact, higher than thurs close but that is irrelevant, investors must do what they want to do, not what i do, and do your research to and know your own risk/reward and make your own decisions.
there will be pull backs in every stock on a steep rise where some take profits and some find buying opportunities, i’m cool with that. some investors not used to having winners of late won’t be able to resist banking some, meanwhile i suspect buyers will snap up any dips at some point ahead of the next trading update mid april. that’s the way all rallies and winners get to much higher levels.
you have to remember that when there is big buying demand on volume, mm’s are often selling stock they don’t have. they make it up by buying shares on a mark down when the short term rally is over. this is how they balance their books, buying back shares cheaper than where they have recently been selling them to punters. you will often find rallies on 300% or more normal daily volume, then pull backs on far lower volume, that’s how mms work. a shortish period when the books are rebalanced and the cycle usually starts again.
if a bit of volatility bothers you then perhaps illiquid small caps are not the best place for you to be.