Normal downturnIt seems many people are surpised by the fall of Denison share price.
How soon we forget.... It wasn't all that long ago that the stock traded around $1.05.
The drilling season is basically over. There are no pending drill results to boost the stock.
The impatient are all stampeding toward the exit and taking a loss in the process.
Many, many mining stocks head south in the Spring and Summer and pick up again in the Fall and Winter.
Someone said I was a "day-trader" when I sold at $1.85, but it just seemed the logical move at the time as the stock was showing all the signs of having had it's run for the year and that meant only one direction left to go.
This downward trend has little to do with Japan, Denison executive decisions, or Uranium Spot prices, but has everything to do with the menatlity of people who play the market.
Logic dictates that we buy low and sell high, but in truth most people do the exact opposite.
They get swept up in the fever and buy a climbing stock and pay a premium price and forget that it can come down much faster than it went up.
To make matters worse they sell in a panic on the downswing.
So........they bought high and sold low instead of the other way around.
It seems the best time to buy a stock is when nobody wants it...........which in Denison's case would be around now.
It may even fall further yet down to the $1.05 level again.
So What?
What a perfect buying opportunity.
What a great time to average down it you're still holding.
If you bought at $1.80 and buy again at $1.30, you're break even point drops to $1.55 and that price(and higher)should be easily attainable as we progess toward 2015.
Many people are depressed and bailing out.
Be one of the smart ones and look at this downturn as an opporunity to get in----not to get out.