2020 BRN Discussion, page-6001

You might like to go and research the word “liquidity” as it applies to the Stockmarket generally.

Some advisors promote the idea that if a share is illiquid it is dangerous to buy it as you may not be able to sell it if you need to liquidate your investment ie; turn it back into cash.

They will seldom mention that one of the most valuable shares in the world is on their definition highly lacking in liquidity because those who bought the first shares in Berkshire Hathaway seldom if ever sell.

Traders like shares with lots of liquidity where ordinary people who are unsophisticated in the ways of the sharemarket hold a large percentage of the shares on issue. A company like BRN has been perfect.

You no doubt have read posters like for example Dolci say that traders will move on soon. That is because as good news arrives the ordinary people seeing the price of the share increase become confident in their decision and hold on tightly to their shares and ignore the attempts to manipulate them into selling or buying.

The most important quality to have as an investor is self discipline and belief in the system you employ to make investment decisions.

Chartists believe in what their charts are telling them and apply this in a disciplined way to making decisions. Dolci is on everything I have seen a chartist who invests this way.

I as it might surprise you use research to formulate my decisions and then discipline to carry them out even when Dolci might be suggesting something else. So far we have been on the same page I might add.

If either of us were to irrationally abandon the system we use then we would become fodder for those traders who use a range of techniques to have us act as favours their position at any given time.

The pattern we saw of dropping the price to 16.5 cents at close for five days was employed to weaken the resolve of ordinary shareholders who might have bought in at 17.5 cents and though not disturbed by a 17 cent close are by 16.5 cents and in that frame of mind reading a post on here saying it is going back to 13 cents as it has in the past drop their shares at 17 cents when trading resumes.

Selling and buying your own shares can drive the market one way or the other and the cost of commission is not a deterrent.

You have obviously done well to date but you owe it to yourself to fully understand the games that get played not so you can participate but so you can avoid being manipulated.