a case study of how not to love, page-6

re: a case study to keith allen See rules 2 - 10 stop loss stop loss.

While fundamental anaylis with a long term value view is a perfectly reasonable view to hold a stock rather than selling on the whims of traders and technical chart driven sells support and resistance levels.

There clearly is a point where insider selling manifests itself and becomes apparent after the event. A stop loss can whipsaw you out of a stock but it does preserve your capital and you can always buy back in at a higher price to capture the rest of the long term uptrend.

This with the benefit of hindsight is clearly what I should have done , The only risk is that a take over bid occurs while you are out of the stock which would also have been just my luck.

The thing that gave me a false sense of security was the pommy capital raising at $2.35 ? insto,s dont usually get burnt on these things . They had inside knowledge of huge ugandan potential and the float was 3 x times over subscribed.

Had this not occurred I would have smelt at rat when the shorts got to over 13m and I would have been out at $2.20.

Cheers Hoot