BUD 0.00% 0.6¢ buddy technologies ltd

you need to know how to trade though. know how to read spinning...

  1. 9,772 Posts.
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    you need to know how to trade though.

    know how to read spinning top candles etc + understand valuation relativities in the market

    if you dont have those skills you're generally better off buy and holding - retail people end up selling lows and buying back in higher whent hey try to trade because they trade on price momentum

    as ive mentioned before, since algos came in the short terms highs are higher and lows are lower - they use cfds and trading algos to pump stocks up during risk on for the sector - then deflate it when they shift to another sector

    thats why ive been banging on about valuations and the wide range of values that can apply to high growth spec stocks

    i can make a case for bud being worth $100m or $600m mkt cap - depending on how hot high growth tech is

    thats because its all about how you choose to interpret how ironclad the contract guaranteed minimums are - which is driven by your bias for the stock/sector/outlook and those of the other market investors + if you are feelign really bolshy - an overlay for future dala sales and distribution growth

    but in the here and now the mgt set expectations that havent been met - the cause is irrelevant as is whether the market is to blame for some of the excess expectation - stock gets sold off until expectations to price are back in balance

    it would likely have held higher - but its come at a time when marklet has decided to rotate its overall sector allocations. thats what sped up the price falls in past week

    happens all the time. really nothing to see here

    if you;re too late to sell a top the key is to focus on your reason for investing in the company - assuming its an actual investment not a trade

    if the investment basis is still sound - the daily up down of share price is just noise - because you;re looking at the 3 year view

    but this is also why i said everyone should learn both trading and valuation skills if they can
    Last edited by goldbear77: 21/12/17
 
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