I'd just like to relay that trying to time the peaks and dips is very difficult for the layman - and that this would definitely fit the criteria of "profit-taking" (IMO). Its swing trading. if this is your style, good luck and hats off.
Research has taught us that there is a marked reduction in risk if we just hold. Not saying holding is better - I'm saying there is a reduction in risk/
We can tie our hold strategy directly to the fundamentals of a company (and I know you all know this). Most of us have great faith in MGT, having done our own analysis.
The reality is we can't predict what's going to happen - only make an informed guess on the strength of indicators, and the market reaction to such indicators.
Mark Eames could die of a heart attack tomorrow (sorry Mark, you're incredible btw). MGT could go down the shitter.
Comparatively, when we hit 3.7 cents, FMG could have bought us out. All those people who may have sold out to play the field, would be very sorry for themselves.
I guess the question I've asked myself numerous times is, are the dips and opportunities worth playing risk on, when if I simply hold, I have a much less overall risk of getting butt-ploughed in the long term?
That's what value investing is. Seeing through the dips and highs, the roller-coaster of swing- and day traders, on the basis of a company's fundamental worth and direction.
I think everyone can pat themselves on the back, at this point. The swing traders have profited, and the value investors benefit from a very likely easy re-trace on good news - whilst now having the opportunity to accumulate more! (Gosh where have I seen this opportunity before... oh yeah. MGT, with the BMD Farm-in cancellation).
At the end of the day, both parties can win within our play style, if we're honest with our own strengths and stick to our game plan.
GLTAH
MGT Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
(20min delay)