RE: Dealing in shares...fascinating.4 Feb 2021 12:29
Just caught up with the board after a day away and it’s a pleasure to read an absolutely fascinating and intelligent discussion on here last night and this morning regarding individual investment styles.
If I may add, those of us who prefer to dip in and out on occasions when the chance arises are still long term holders.
When you have been invested in a share like this several months, it is quite possible to identify with a certain degree of certainty, exit and entry points that allow you to either build up your holding or make a cheeky weekly profit.
Doing this has allowed me to move profits elsewhere, whilst keeping a holding here. I see this as sensible money management, lockdown has given me more time to hone my skills in this respect.
I realise this draws negative comments from those who prefer to buy and hold. Lack of understanding of how markets work is usually the main reason, note the ‘we’ve just had a good RNS and the price is falling, I don’t understand’ posts, however individuals who post simply to ‘show off’ their success are rightly rounded upon.
There is another board where they jokingly refer to this style of investing as doing the ‘hokey cokey’, borrowing from the lines of the song ‘in out, in out’.
Over the last year, I have noticed more and more investors are trying their hand at this, as they have more time on their hands, due to lockdown or out of sheer necessity, due to loss of income, redundancy etc. This can lead to an increase in short bursts of price volatility in some instances.
I remember one poster in the summer stating he had doubled his investment in NCYT simply by aggressively selling and buying back his entire holding several times in a few short months. I doubt I could ever be that bold, but selling some and returning a day or so later has worked well for me in the past and again after the latest RNS.
I could never be a day trader, as personally I find that intensely boring, but you can often predict the sell off between 3-4.30 some days, watching these guys skim a margin of profit.
I totally respect an individual’s decision to buy and hold, but respect should work both ways. This company is so unique, everyone will make good money in the long run. I have never come across an AIM share with such strong fundamentals and I doubt I’ll see another as good in my lifetime.
Leaving the PR wrangle to one side, the chief has always acted with integrity and dignity in these difficult times and should be applauded for doing so, we are lucky to have him steering the ship.
In addition, this board is very, very fortunate to have posters such as Van V and Shaun P for reference when the need arises. You’d normally have to pay top dollar for the information Mr P provides for us free - Philanthropy at it’s best.
I believe this board will soon settle down as everyone moves ‘into the blue’. The trolls and de ramping will die down, as institutional holders gradually take a firmer hold, the MMs will