Hey Guys, I have mentioned free carried on this thread a number of times, and I have been berated for it often. Mak, you know a little about being free carried, and I have followed you for a number of years. Free carried is not a dirty word. It is a percentage mathematical equation that determines wealth when playing with highly volatile stocks that have a high risk and high reward.
Once you get your head around it's concept, and once you give in to not being greedy, but being logical, it is a great way to play the spec market.
We all have stop losses, (well I don't ) but logic says you should. But how many of really apply that logic to a share price rise. Not many, because all of a sudden, greed becomes a factor. I was a victim years ago. I would watch my penny stock triple in value, believe whole heartily that it would quadruple in value, only to watch it slide down the slippery slope to being worth what I paid for it, or less. God, I learnt some lessons.
With a stock like RMX in its early days, you should be just as vigilant on the way up as you are on the way down. Just as you fall into a panic and make the decision to sell on the way down, you should also fall into a panic and sell on its way up. If you sell with a 25 percent profit, but you could have realised a 50 percent profit, what is the embarrassment? None. If you bought a penny stock for .003 and sold half your folio at .006 and were a hundred percent free carried, but the stock were to run to .03, then what is your embarrassment.
Same old same old, "Oh, I. Sold out too soon" but guess what, you have retained your initial investment, and you have 100 percent profit, no matter which way she falls. You may only have made fifty percent of what you could have in the circumstances of a huge upward swing, but the profits are 100 percent yours. (Other than the tax mans cut) life in a stock such as RMX is not that hard to tolerate.
It can be a great thing. Just as you are ready to scream blue murder on the way down, Be prepared to say Thankyou on the way up, take your dollars, and then rinse and repeat. So now, I would love to hear your theories
PS,, this is in no way financial advice by any means, it is a start to a healthy discussion.
RMX Price at posting:
1.1¢ Sentiment: None Disclosure: Unspecified
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