My Best Opinion About This Stock is Highly Risky But Still
with good future opportunity to make a decent return on your investment when investing at this level. Nevertheless, this stock is going to be a buy and hold longer term horizon so that it gives the company time to improve on where they are at. With this being said, like I mentioned in the last post I would hold a designated core position and maybe use 25% of the overall number of shares as traders to pull money off the table either at a loss or at gains. Usually, I have started to sell between 1,000-2,000 shares at a loss of 20% depending on the amount of shares that I have if 10,000 or less 1,000 more 2,000. I may or may not do this here as I am learning to be ballsy in holding 100,000 shares to gain that toughness for future training and especially right now because it is a bit tough to do when this is trading very tightly and is not as liquid as other of my holding. Additionally, I have covered myself with my other holdings in which I have quite a bit less shares--the next highest at 30,100 and that is natcore. A thing that you may want to keep in mind is this--one 1,000 shares every penny up or down=$10 of loss or gain, 10,000 shares=$100 per penny 100,000 =$1,000 per penny. When people have in access of 100,000 shares they will likely sell at a 20% gain and apply whatever tactic they use and that is the reason I am saying buying and holding people will get killed as well as others trading on interval (spread) placing their buy and sell orders where it mathematically makes sense in making their profits usually in pennies I have noticed it is .05-.07 differential or maybe less depending on where these day traders believe they can make money. People also trade on margin and do all sorts of stuff I don't even know very much about and will not likely do. But the point being is that if you are holding long even a core position like I am suggesting to get the best of the trading and hold world, those who would in this sense be considered longs will have to put up with all the shorting those constantly selling quickly to make a quick flip return. Getting back to the tactic let me try to lay this out step by step. Let's say this stock was more liquid and I bought 10,000 shares at .10=$1,000--let's say the share price drops by 20% to .08 your cash equivalent worth has been reduced from $1,000 to $800 and you still have your 10,000 shares. What I would do is sell 1,000 shares (my determined amount as for what I was stating above) that would leave me with 9000 shares in hand worth $720.00 and 1,000 shares which when traded will have a cash equivalent $80.00 Now you have 9,000 shares and $80 in hand. If the stock moves up again you don't do anything keep the cash, if the equity moves down again by 20% it will mean 1.6 cents but to make the calculation easy call it another 2 cent--to .06--at this point I would buy 1000 shares and keep the remainder which is $20 in hand this is what I prefer or what others may do is buy 1500 shares. You now have your original position plus 500 shares and the worth is $800 at the .06 price. If the equity goes up you're happy but if the equity goes down again buy another 20% you're still happy providing you dump the shares that you picked up and pull the cash equivalent out in this case it would be for ease of example 4.8 cents rounded to .05 you pocket $75 are down to 9,000 shares and total worth is $450.00 in shares and $75 in cash or $525.00 which is better than if you held all 10,000 shares where you would be $25 down as opposed to the above--with the cash the point is you can keep circulating between your original position of 10,000 shares and depending on your buy point have equal to or a little more depending if in the first or second instance--first instance you will be minus 1,000 shares so you take your money out to use on the second drop in which case you will be either equal to or have more shares or have same amount of shares and money in hand. I would continue to do this so that you have both cash and shares in hand and are reducing your losses while at the same time building your position to possibly end with money and more shares in hand so that when the equity moves up you can also sell where it makes sense. This will protect you from the losing end and will position you in a stronger position on the uptick. The other thing you can do is sell the 1,000 shares and keep the money on hand and just wait. If the stock looks like it will keep going down just wait until it bottoms rather than repeating the cycle as suggested previously. If the equity doesn't go down where you can at least get back the amount of shares you sacrificed don't worry just know that you made a safety decision to protect 90% of your position and covered yourself from taking a loss on 100%. If I had 15,000 or more I would use 20% of my holdings to do what I had talked about or about 3,000 shares. I may decided to sell about half at 20% down and if I do things properly I can keep circulating them without touching the other half which I can use to take money when the equities is profiting--I usually look for a double and sell enough to take out a quarter of my initial investment--I am a bit of a risk taker someone else who is more conservative will likely at the very least sell half their position to take out all of their investment and the other half becomes what people call free shares. The bottom line is that one must have a strategy that they are comfortable with and which will reduce their losses and gives them the opportunity to optimize their profits. If you take losses and gains a lot sooner and follow a very fixed strategy you will 9/10 times be further ahead!!! Again, folks buying and holding mostly you will get killed. And if you unfortunately find yourself in a non-liquid stock yes will tend to lose quite a bit on larger amounts of shares there is no way around that--so you have to think will you wait around and take those hits or sell and move on to more liquid equities--look at the price history and the number of trades--if there are few trades regardless of large volumes I would think twice about investing in them unless you have the you know what to stick it through with potential of massive losses on large quantities--or even on smaller ones if you don't have much money like myself--my $1,000 means to me what someone else's $100,000 means to someone else, so ultimately just be smart in what you do take your profits and losses sooner and cover yourself. When I am trading now what I have typically started to do is pull 20% of all my monies from each side and put it aside to build a cash position and put the rest back into reinvestments that way you will have a forced 20% savings and will always have cash in hand. Think it like a piggy bank. You have $5 and you buy something worth $3.00 you get $2.00 but instead of spending the whole $2.00 at another time you pull a dollar from there as that is 20% of the $5.00 and save that and you keep doing that with each of your share sales and keep growing your money as you keep adjusting your equity position so you will always have cash and equity in hand. The rationale behind this is that you will not need to think whether to trade your positions away, take a risk on another equity you seem to like and feel will selling a position in my existing shares to buy shares in another be a good decision--you want to remove as much emotions in your investing circumstances as possible. If the equity that you sell to buy into you are happy but if it isn't and does worse you will most likely have regrets and if you happen to do this more often than not you will most likely become bitter. See where your mind will be at the most peace and avoid seller's remorse and buyers regret when you don't have money to buy something you like and which does well. Sorry if this sounds like gibberish but I hope you get something out of it. Pm me if you are confused and I will try again if you are interested. hope this helps. glta