Buy Low And Then Buy Higher! No, the subject line is not a typo. This is the ONLY way you are going to realize outstanding returns.
Read this article by Ian Cassel. Read it once. Read it twice. Read it a third time. Print it out. Keep it next to your computer. Read it every time you contemplate placing a buy or sell order.
No, I am not promoting Ian Cassel or his website especially now that he is turning it into a paid service. There is NO need to pay but there is a need to read the articles on his site. Read them all and then take a VERY good look at your own microcap portfolio.
Then ask yourself: If I saw this company for the first time today and did some rudimentary DD, would I buy a starting position at today’s price?
If the answer is yes, you hold or average up.
If the answer is no, you get da hell out of Dodge.
It’s that simple! None of this “sell half on the double” BS unless you need some cash to buy another stock you feel you absolutely need to own right now.
BTW, I am NOT posting this to start the never ending argument about investment philosophies and I’m not posting it because Ian Cassel wrote it. I am posting it because it reflects my own (not just) microcap investment approach. An approach based on nearly 40 years of playing this game and the countless and often expensive lessons learned.