At this stage, they are right. I never said this is the end of the line (as per previous post to Sskim stating I'll buy back in if the conditions are right).
However, regardless of if you are a trader or an investor, the end game is the same. Maximise gains, minimise losses.
Would an investor that bought at $1 on the way up be happy still holding at $0.40?? Of course not. That's why EVERYONE should have stop losses. Obviously a trader will have a much tighter stop loss than an investor, but everyone should still have one. Especially after the way it was thumped from $1.12 down to $0.89 on that fateful day. That should be a sign to an investor that the outlook might have changed for the moment, best to maybe sit on the sidelines and wait for confirmation one way or the other.
How many times has an investor bought a spec stock, only to see it dwindle down from their purchase price and sit in the pits for years on end. And in the meantime, they say to themselves "it's a bottom drawer stock...it'll come good eventually...." Sometimes it does, sometimes it doesn't. But look at the opportunity cost that has occured....by having money tied up in something that's falling for years, they have missed many other opportunities.
It's always safer and smarter LONG TERM to realise losses and sit on the sidelines until confirmation. You'll never make as much that way (might miss out on the first 10-20%) but if it's going up 300-500% or whatever figure you have in mind, than who cares about the first 10-20%. At least you won't have lost most or all of it.
Cheers
GDN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
