RE: RNS Monday ?26 Aug 2022 18:49
thats a tough one dai only because every situation is different if you are using a FA approach.
There is no limit as to how far a share can rise and pretty much how far it can fall.
If you look at fundamentals then I guess you would need to look at the current valuation versus the assets to see how over valued it is and that might give you an idea of whether the boat has really been missed or not.
But for me I am always surprised at how far SP's can move (look at boohoo as a good example, its made a ton of money, expanded into many viable brands, good platform and has lost 90% of its value and is below the IPO of years ago.... go figure...)
So I moved away from trying to figure out "fair value" and looked at charting as another avenue to try and make money out of the markets, and as it turned out, it seems to work for me more often than not.
The basic rules though I think apply across the board whatever system you use or sector you prefer to specialise in, and thats never, ever, put more in any stock than you can comfortably afford to lose.
And have a reasonably diverse portfolio.
Which means be wary of too many high risk, binary stocks. There is always the belief that you only need one to win to compensate for all the ones that don't but there are a lot of those type of stocks out there and there is no guarantee, that you will ever hold the one that wins....
Fwiw, I think it is hard, very hard to get rich quick playing this game but not so hard getting rich slowly.
Patience is a virtue and imo, the greatest of them all.
Don't know if any of the above helps.....(probably not, ha ha)
Have a great weekend