I've started to implement a new strategy for DT/ST stocks, thought I'd share with you guys. Have done this a few times in the past - here it is with IOU:
Bought too early at 14c, topped up at 11.5c and then once more at 10c. So in the end I was in for 5k with an avg. of 12.3.
Since Commsec only charges $10 for trades under $1,000 i sell it off in 1k parcels. The first of these being at 14.5c (very small profit but lowering my exposure to a stock I had invested more than I intended). Sell more 1k parcels as it continues to go up - this is where the profits can be maximized if you happen to pick your spots.
Hypothetically speaking for IOU I may sellf 1k parcels again at 19c, 24c, 30c?? And still be sitting on a nice some if "bonus" money.
It's probably a simple strategy, but as I don't intra-day trade like some of you pro's I find that its really effective to secure profits along the way. And just in case it drops off and stays stagnant (as happens very often), you can leave the money there happily with out regretting not taking profits. If it rockets - fantastic - those profits will just grow.
