Don't believe the only take a loss when you sell bit - really bad advice.
Your net worth is the market value of the shares at the time. A better strategy is as follows.
Consider you have 1000 shares at 1.20 and the price falls to .80 then back up to 1.20 your net worth still $1200
if you used stops so that 1.20 falls to 1.10 you sell and recover $1100 it then falls from 1.00 to 0.80 , you wait a bit and it rises to .90 so you buy back in spending the $1100 at 0.9 to now buy 1222 shares which rise to 1.20
your net worth now $1466
you just made 266 additional dollars because you were able to buy more than 1000 shares at 0.9 with the money you recovered at 1.10
The moral is if you are convinced that the share will go up - then focus on the number of shares you have not their worth.
BTW the theory is easy - implementing it.... Well I am still using hot copper not sailing Sydney harbour on my mega yacht....
CNP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
