What has happenend to Jutt over the last few weeks offers a great lesson for new stock market investors imo.
First we had a very promising announcement. High grades were revealed. However only from one hole, & the company said that the results from two holes were received.
But those grades from hole 6 were very good.
Lesson 1. Look at the options available, the exercise price & their period of validity. They were (& possibly are) too cheap. Hence good gains were made as they went from 5c to a high of 8c.
Lesson 2. Sometimes when a good announcement occurs the share price kicks off, sometimes it doesn't. If the value seems to be there, the price will come back. The options went back to below 6c, but the potential was still there. Hence, over time the price went up again, hitting 8.8c.
Lesson 3. Know the company & do your research. Metabolic once put out an announcement stating that their obesity drug showed good results. The stock opened up 25% at $2.50. Those who did their research would have noticed some bad things. The main thing being that the lowest dose of the drug showed it's positiveness. However early data stated that the highest dose was more significant. In fact the new results were totally different to ealier data. That was very bad news. But the stock opened up 25%, at $2.50. It ended the day at $1. It is now below 4c. The lesson, do your research, so that you WILL know if an announcement is good or not.
Lesson 4. Set a stop loss.
This message is purely to help newbies to the market. No offence intended.
cheers
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