Dear Yummy, now they have you where they want you. You sell or...

Dear Yummy, now they have you where they want you. You sell or you will sell. Honestly, does Carnaby Resources sound better? Liontown? The name is probably pretty irrelevant. You have changed your sentiment to sell. So sell and never look at the SP again.

Psychology is the most important factor in investing because it is responsible for more than 60% of our investment success. Perhaps even more.

It all comes down to the "line of least resistance" and how the investors who own the stock think and feel about their position. The "line of least resistance" is up and the owner is happy! Think about yourself. You own a stock that hits a new high and many other investors are on board. Everyone sitting on that position has a profit in their portfolio, feels validated in their analysis and lets the winner run.It's not a position to worry about and the uncertainty is low.

And we know that as investors we don't like uncertainty.

This is also the simple reason why a new all-time high is the most bullish sign when it comes to technical analysis. New lows do exactly the opposite - see chart below.

Stocks with losses? This gives rise to many discussions, and very often two outcomes emerged: One was to buy more of the stock simply to lower the average price. The fundamental story is neglected because it is only about increasing the probability of reaching the break-even point. Alternatively: "Let's place a limit order to sell at the break-even point so that I can get away with no loss and a black eye".This is the starting point for "weak hands" in the market: investors who do not believe in the company and are only interested in exiting without a loss.

I think that's exactly what we're seeing here. Every time there is an upward move, people sell because they don't believe in the story. On the other hand, people with a long-term view are buying precisely because they see the potential. Yes, there are people who bought at 4 or 3.9. Either they are completely stupid or they are making certain assumptions. That's always the case.

I think you'll agree that you've never told yourself that you missed out on a big winner because it was too cheap. On the contrary, you missed out on a big winner because it was too expensive for you.

At 3.9 cents HMX seems too expensive for you and you change your sentiment to sell. So I'm not interested in paying 3.9 cents today for something that's worth 10c and then selling when it hits 10 cents. That strategy only pays off once. I'm much more interested in paying 4.5 cents for something that is worth 10 cents today but could be worth $ 1 over time. This strategy pays off multiple times.

"It's supposed to be difficult. If it were easy, everyone would do it".

I don't want to write any more. It's no use anyway. As I said before: Put the hammer in the drawer and then wait until it wants to come out again to hammer in the nails.

I'll stop writing now and wait for results. It's all been said. DYOR