Fatstocks, there are two contrary paradigms when trading stocks
1)Buy when others are selling and sell when others are buying ie don't be a sheep.
2)Don't fight the market. ie be a sheep albeit try to preempt as much as possible the other sheep.
The first group see fdl at 7.6 - 8.1c as a great bargain and happily buy it up at a relatively low price. They are probably buying from people that paid between 12 - 16c for the stock just a few weeks ago.
The people that believe that small miners/spec stocks will continue to be punished are selling. The "Don't fight the market" group might be looking at the fundamentals of stocks because perhaps they bought in the tech spec bubble and lost money on it. Perhaps they are simply selling because everyone else is.
What concerns me is the fact that specs are volatile by nature and that is amplified by the extremely volatile market we've been in the last couple of weeks. Unfortunately the market seems to be going into a downtrend at the moment perhaps something more serious than just a correction in an otherwise north moving market.
All I am saying is specs currently are probably riskier than what they have been in the past and if the downward trend continues it will be the specs that are hit hardest because more people from group 1) will start joining group 2).
Stability is not a word I would use with any spec stock at the moment.
Cheers.
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