RE: Tonight’s gcm29 May 2025 07:14
Nice one guys,thank you for keeping the board updated it all sounds interesting. Woke up earlier than usual this morning, can't imagine what caused it 😄
Any way I decided to take my mind off matters by just doing a few little math examples for those who think it's good to take early profits when investing Long Term.
So let's say you buy 500,000 shares @ .0072 your initial investment is £3,600.
You have a great start and within days the value has gone up to £4,100 @.0082
You decide to top slice the £500 profit as you do a dummy sell and are offered .0077 ,seems great eh?
Go on take that money ,after all,.. your here to make money.
Well if that is the case you may as well take it all out,..your not an investor ,your a day trader!!
Here is why I draw that conclusion.
If you bought 500,000 shares with your initial investment,..as an investor you would leave them to build more profit and may even add more shares to build a bigger holding,..always a good idea to have some money in reserve to take advantage of any buying opportunities if the S.P. dips
Here's what happens if you confuse taking profit early as a smart thing to do if you are committed to the share long term.
Your £500 profit cost you the loss of 64,935 shares,...so you now have 435,065,..worse still is the fact that they are now worth £3,567.53,..not £3,600 because of the dilutive effect of your profit take.
if you now decide to top up to get back to your original 500,000 shares you better make sure you do it below the original price you paid to break even otherwise you are going backwards.
Have a nice day and good luck to all invested long Term.