RE: HCI loan options12 Jun 2024 12:48
That is the million dollar question D.
It really depends on what the buyer want/expects.
If AVCT release data- rich, good news and the SP jumps to...say.. 100p? then 2 things can happen it can go up further or fall. (An unexpected RNS would suggest just buy in asap and hang on for dear life. Normally however, there are some nibbles in the SP that might get you to buy prior to the unexpected news.)
Its impossible to know which one will happen For me, as you know I would use the RSI to help with that decision, but that just helps the odds of being right, its no guarantee.
If you think, that's it, the course is set and I will hold now to see it through and its 2 years at least , then a potential retrace to 80p or whatever, becomes largely irrelevant.
For my part, I can be a LTH and trade it at the same time. Thats not an accident, I am trying my best to have the best of both worlds, but its not for everyone.
Ultimately, whatever "system" you use, there should be a plan. Why am I buying, right now, at this price? Will it go lower? maybe but I don't want to risk missing out? You have to examine your motivations to see if they are rational or emotional.
Then once you have bought, how long do you expect to hold them for, and what price are you aiming for when to sell?
And if you get it wrong (as we all do), then when do you crystalise the loss?
Honestly and sincerely, I don't know how anyone can buy a stock for whatever reason and not have these questions answered in their head.
So I think it is wise to consider the what if's, as if it does occur you can act accordingly.
What makes this harder (AVCT) is that it is a loss making company and therefore large swings will always accompany such entities. The individual has to decide what they want from it given its high risk.
The plan may, as events occur, need adjusting but most shouldn't. (For me TA is more mechanical and removes a lot of the emotion out of these parameters, but each to his own.)
What I don't get is to buy a stock and have never considered answering any of those questions.
Like everything there is no right and wrong when trying to predict the future......
The fact is this buying high risk small cap companies is almost always going to result in capital depreciation for the individual.
Getting rich slowly is actually pretty easy if you can save a few thou per annum regularly. The irony is that youth wants to get rich quick and when you realise the solution you are too old!! :0))
(Best wishes to your girl xx)