No clear direction?.Yes, we lost 3 pips to finish on 4.2 today...

No clear direction?

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Yes, we lost 3 pips to finish on 4.2 today on a volume similar to last 3 days, slightly less. We finished last week at 4.7,so lost around 10% for the week. Although it may not look very good, but most resource stocks struggled today, if not for the week. So at this I am not really concerned, it could change though depending on what happens next.

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So why are sellers happy to sell at this level. There could be few reasons, taking also into account the comments that I am reading. Firstly, some feel we are going much lower, so those punters are happy to sell now and expect to buy back lower. Secondly, and unfortunately, we see to have attracted some pip traders, those happy to play even 5 to 10%. My thinking around this is that this is good, as long as it works. But if a day comes and price shoots up, most of those punters would get locked out. One of the hardest thing in stock market is to buy higher than your sell price. Many will wait, and wait, for the price to come back below their sell. Many times it happens and obliges, making those punters feel very smart. But sometimes price could go parabolic, and gains of 100 and 200%, but they miss that, because they were looking for that 5%. No advice here, just speaking from experience, so please do as is best for you. Third reason is some feel next significant announcement could be away, price will drift and go lower. So all fair points.

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I would be lying if I said I don't get the same feelings, of punters selling, waiting etc. So how do I manage that. Any stock I play, as a thumb rule, if I am optimistic of something good, I play two thirds for long, and one third I keep trading

Hence when I write, I mention my long stocks and my trading stocks. My trading stocks I play exactly as many have mentioned why they are selling. My long stocks, I just hold. Two different accounts. My last post I had mentioned my longs are at 4.4 and my trading at 4.1. I sold some of my trading stocks today at 4.8 and bought back at 4.2,my average for trading now is 3.9. I did not add to my longs. Please don't bash me, I have been doing this for long, two thirds long, one third trading, and I don't sell all my trading stocks, just a portion. It keeps me on my toes, I like buying and selling, and keeps me liquid so that I can play. Sometimes it works out, other times I miss. But when miss, I am not sad, my long two thirds are doing well. So that's me. Maybe not the best way to play, but suits my personality. It's not easy, so please check for yourself. Next week, first step to get over 4.8, if we can hold that, I feel suddenly we will be in 6s.

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So what will happen now? I am cautiously optimistic. There is something about Damon which I have liked. Every leader will promote their brand, good or bad. So nothing different from that perspective. But, after hearing him multiple times across different places, there is a brightness in his eye. He has got the exuberance of a kid who has just discovered a stash of chocolates. He wants to tell everyone about it, his find. Of course not everyone will listen. And of course, he would have got it wrong. But odds favor him, at least in my eye. We all play with so many stocks, some we win, some we lose. This is just another one. I have decided to punt for this kid.

But if things fall in place, as I am thinking, 5 to 10 times from here is easy looking at market cap

But again, I may be biased, so please dyor. Enjoy your weekend and all the best.