totally agree. I believe it is due to the fact that the vast...

totally agree. I believe it is due to the fact that the vast amount of research we can do relies on reading company announcements and having faith that they’re truthful and well intentioned. This more often than not is an incorrect assumption. The ambiguity, half truths, omissions, and selling of pipe dreams is pretty standard practice. All the while directors drag out their roles on massive salaries and grant themselves huge bonuses and “performance” shares whilst diluting existing shareholders into insignificance. The sudden realisation that we’ve been sold a pup is a painful one. It’s not just the loss of our investment but the loss of faith in the company, the director, the board and very likely the entire small cap “investment” universe eventually.

often when a company sees great success it involves a large degree of luck that I believe surprises the management as much as it does the investors.

due to my personal experiences in this I have become more of a trader than an investor in small caps and seen my returns improve immeasurably. You only need to look at the SP performance chart of 99% of small caps from their initial IPO to the present to see that the buy and hold strategy is a loser far more often than not.

be safe out there. Trust no one. Good luck.