You're right brakedust, about the downside of selling and then missing the pop when it comes. I would hate that. Just to clarify, I meant that I'm considering trading only new shares that I buy on dips and sell on announcements, not the ones I hold, which I'll continue holding in the belief that a long-term strategy still has merit. I think of it as hedging my bets (take the Middle Path, Grasshopper!) because I bought more than I should have for a speculative stock and selling down a bit will make me sleep better. My hope is to make enough money out of the short-term trades to recoup a good percentage of my initial investment. After that I can put my long-hold shares in the bottom drawer and not be concerned about the short-term share price.
Short-term trading is not a strategy I like or practise. But in this case, I'm going by the numbers. After doing the exercise of plotting announcements against the share price, it just seems like such a strong pattern that – if it continues in the same way – will deliver returns. I'm not confident now that future announcements will have any more of a positive effect on the share price than the recent ones have. I think of Einstein's famous dictum, that stupidity is doing the same thing over and over again and expecting a different result. Maybe now it's time to try something different.
AZY Price at posting:
4.6¢ Sentiment: Hold Disclosure: Held
(20min delay)