I have started a thread- ''
Lessons in trading/ Investing for this person'' in the hope that others may provide some suggestions for you.
https://hotcopper.com.au/threads/lessons-in-trading-investing-for-this-person.7725767/Here is what I posted:
@nigerpaleo,
Not sure if your posts are real, but I read them. If they're not real, then perhaps someone else can get something out of this post.
I can see why It's difficult for anyone here to reply to your posts. If your posts are in fact real and this was your first trade, then you have many, many, many, many lessons and learning-curves if you plan on sticking with investing and/ or share trading.
Google this-
What percentage of share traders make money and survive in the game over years This is not advice. These are just some things I believe, so take them as you will.
All I can share with you is some of the mistakes I've made over time.
I am not wealthy, nor am I anything near an expert, however, I have made many expensive mistakes.
If you can learn from other peoples mistakes, then this is good. It's free !
I think you will find that most here are not wealthy as those with loads of mulla ($) don't need to take major risks on speculative stocks such as this.
The wealthy will more than likely let financial managers take care of their funds and/ or invest mainly on blue-chip stocks.
That's not to say that this stock won't do really well. It could, no-one knows yet, but so far, there are a lot of IF's.
You really need to do a lot of reading (and I mean alot !) and read between the lines.
It would be wiser to paper trade (invest hypothetically/ not real money) until you have built a history of successful calculated trades.
That way, your lessons aren't expensive ones.
If I was you, and you've made the money you aimed for and achieved your goal, then I would take it, but leave some of the profit in, in case the SP does keep rising. It's a difficult decision, but needs to be a calculated one to try and cover all possibilities/ scenarios, which is almost impossible. The main thing here is to try and reduce your risk the best you can and don't get greedy and don't get FOMO. How much to leave in? An amount you are not worried about if you lose IMO (in my opinion).
If the stock SP (share price) then falls, then your not stressing out and kicking yourself.
If the stock rises substantially, then at least you still have a small investment in place.
1st lesson (Regarding Hotcopper):
Don't believe a poster is right just because they receive a lot of Likes
I've seen posters receiving regular 30- 50 likes for positive posts on a company and then the company shut down.
IMO (in my opinion), people like posts as those posts are what they want to hear, and not what they need to hear.
No-one likes bad news.
And that reminds me; No news is good news right?
Not in the stock market from my experience.
If there's an extended period of silence from a company and an announcement is well overdue, then I see this as a red flag.
Lesson 2 (Regarding company management):
Don't believe a company's CEO, Chairman, MD etc.
Their job is to maintain the company, maintain shareholder support and to maintain a positive sentiment regarding the company.
Even if you call the CEO etc, they will NOT give you bad news. they may seem nice and easy going, but they are there to gain your $ support. It's their job ! Many of these upper position people move around earning a salary from company to company.
At the end of the day, 99% of them are just there for the paycheck. I've seen companies get grinded down to the bone untill there's nothing left, all whilst management are still giving good news.
One experience I had (from lesson 1) was I contacted the CEO as the announcements were lacking important information, were vague and just didn't seem transparent.
I ''expressed my concerns'' to the CEO, which he then told me there would be positive news announced mid week (breach of ASIC rules).
I sold my shares and never bought back in after that. I didn't want any part of that unethical BS (Bull Shit)
That company folded not long after.
Lesson 3 (Regarding Investment/ Trading psychology):
Don't get emotional:
Buying and selling your shares is a transaction. Do this by removing all human emotion if possible.
I noticed one of your posts, you mention not wanting to affect others by selling your shares:
Take care of yourself and forget about people you've never met on HC
You are here to make money. Remember, remove all emotion. It's the harsh, shark infested waters of this game.
Lesson 4: Don't gamble:
Try and diversify if you can, but if you can't (such a small investment doesn't make it worthwhile), then do as much research as possible before entering.
Lesson 5: Don't buy into stocks that have less than a few million $ in the bank and monitor their financial standing whilst you hold
Lesson 6: TAKE PROFIT. Sometimes it's timing, sometimes it's luck or a combination of both, but take profit and don't get greedy (Greed is an emotion)
Lesson 7: REDUCE RISK, REDUCE RISK, REDUCE RISK
This may be having a stop-loss in place and and sticking to your safety/ risk management strategy, diversifying or not holding for long.
Lesson 8: Don't get FOMO (Fear of missing out)
There are plenty of opportunities that come around all the time.
One or two bad mistakes and you've lost a large portion of your cash.
Important Note/ Quiz:
If you invest $1,000 and you make a loss of 50%, you have $500 left right? Okay.
Now with your $500 that you have left; How many % does your $500 need to gain to get you back to your original $1,000 ????
Is your answer 50% ?
If so, then it's wrong (and a mistake many beginners make).
It's 100%
Think about that for a second...... You now have to try and make a 100% gain to get back to where you started.
This is very difficult and can take a long time and luck. All whilst trying to battle with human emotions among the shark infested waters.
Lesson 9: DON'T IGNORE THE RED FLAGS !
The SP (share price) keeps dropping and you still haven't sold
No news announced and news is overdue by a month or so
Company resignations
Lesson 10: Stay away from low liquidity/ Low volume stocks
If you had to sell in hurry, would you be able to sell straight away without losing a significant amount?
Low volume stocks can be very dangerous this way.
These lessons are only a drop in the ocean. I would say there must be at least 500-1,00 lessons to be learnt, at least!
There are so many learning curves and lessons in these shark infested waters and sometimes you're up shit creek without a paddle.
There is no place for emotion or sensitivity in this place. This place is full of spruikers, rampers, Disallowed salesman and people generally with there own agenda. Dog eat Dog, kill or be killed.
Take the money, but leave some in IMO
Perhaps others here can reply with other lessons and/ or mistakes they've made......
P.S. IMO, this will go back to 75c (Capital raising price as most stocks fall back to their CR price IMO), but you just never know
Good Luck.
(20min delay)