Rollbacks good or bad don't fear themRollbacks good or bad
Well all depends at what price you bought it at.
Not very nice when you have bought@.25 and it does a 10/1 and now you own it at $2.50
In PTX 's case I bought at the bottom so I decided not to sell as most times I do and wait for it to decline in price like most do in time.In this case I did not sell as I see a upside for the following reasons.
The roll-back was only 4/1 as most are 10/1
Latest news was excellent copper find.
We will see at what price it closes on the 10th @.03x4 it will be in the .10 to .12 range.
Now if it drifts lower I will be buying down to help my average price.
When a roll back happens they usually go up a bit in price and soon after start falling back a bit.[Not all the time]
They let out the ones who got stuck with odd lot shares [usually a sign the small investor is getting out ] and try and pick up a lot of cheap shares from the ones who gave up before raising the price or doing a underwriting.
Why would they do a rollback?
It's much easier now to raise the price,especially if you want to do a underwriting as you now have less presure from the traders and attract syndicates or professional group's.
The cyclical nature of the market is the second most important thing that you have to know after psychology
Thou shalt understand the market and it's psychology buy low sell high