Storm, $5,000 is an OK amount to put in a small speccy at base level. No point getting hairy chested about how much people have or haven't invested. When you are trading, you need to spread your risk in both the types and sizes of stocks and also into different sorts of trading instruments with different exit dates. On a stock like this, even though I reckon its a great pick up at 2.3c today (it looks like it might drift back and fill the gap BTW), I wouldn't want people to bet the house on it.
At the time this was first a chart pick for us, $5,000 was 250,000 shares. When the stock gets to 10c that will be $25,000 worth. At that time there will still be people buying $5,000 worth of stock, but they will only get 50,000 shares. Basically, small early money gets the worm, to mix my metaphores. That's how you make a living out of trading.
If somebody buys today at 2.3c and the price sank back to the placement level of 1.7c, where it would drift for months, you would only have lost $300 plus brokerage. If it goes to 9.4c, you would have made a profit of $15,434, so the risk reward equation is exciting on the up side without being stressful on the downside if you keep your entry modest.
And we're not guessing or gambling, we're making the pick on price and volume action. Make the entry pick that way, make the exit time that way. Its a learned skill like any other.
RMG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
