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02/08/18

00:40

Post #: 34680018
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Originally posted by 1ronnie ↑

There seems to be an undeniable trend amongst investors in the tech smallcap space.

Over investing in a potential growth stock (still a speccy) and not taking profits at the point when valuation appears to be highly stretched.

I won't be bringing up BUD as case example , although I believe it is a relevant case, because it has been mentioned elsewhere in my posts.

Take 3DS. I identified this as a potential in the early days at under 4c , it went as high as 16c but I took profit at 14c. And since then (post Dow crash) it has been falling like a 'falling knife" and today, on announcement of a paltry $30k quarterly cash receipts, was smashed to 3.5c. Yes, if I had continued on believing the story and failing to liquidate and take the gains, it would have been a loss now. I said this in the Bud forum- you can make money riding a potential growth story at its early stages but only if you know to take profit and not fall in complete love with the story. Risk management after all is the most important aspect in investing/trading- my Rule no.1.

Yet, we hear of people in GSW, BIG, BUD, YOJ and many others who have made considerable gains only to see them go ....because they cling on.

The smart ones would have liquidate enough to take their capital off and the remainder as profits to ride in the long run...at least if things don't pan out, you still keep your capital.

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Guilty as charged for hanging onto BIG for too long.... who would have thought it was so dire ....

As you said, skimming profits is really critical - I am 90% free carried on GSW by skimming and I'll keep the remaining amount on as I still believe they have a story to tell there.

Anyway, some stocks for you to check out mate, appreciate your thoughts and whether they are worthy of your FA list

SSM, AFG, PBP, NTC
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0 Great analysis

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