Hi Bullraider,
I am not a financial advisor, so I point out that any suggestion I make is exactly that, and you are 100% responsible, for your actions.
Here are rules I set for myself (after learning the hard way):
1) Never invest more than you can afford to lose. In RAP's case, even in an extreme case of a delay, the downside is not likely to be below mid 30's. A paper loss could be a temporary loss of ~11cent per share.. You need to know if you can stomach staring at that on your screen.
2) Buy when a stock flattens/hype has subsided. I NEVER chase moving trains. I leave that to the day traders. Play safe: You don't lose money missing an opportunity.
3) Even when you have decided to buy, it doesn't hurt to wait a day or two and watch from the sidelines before entering. You can either get in a bit cheaper, or if it is equal/ a touch higher, you have had two days to feel at ease that the down trend/selling has stopped and that this is definitely more of a flat, sideways - uptrend in the making. I watched SYT drop from 3.6 (when I wanted to buy) and got in around 2.9cents. It is doing ok now.
4) If you are buying up in a big way eg $100k plus.. Then buy off screen. Don't show your hand. It is in your interest for the buy side to look weak so sellers move their bids down.
5) Sometimes, to protect yourself, initially it can be good to buy half now, and then keep the other half of your cash in hand to avg down if it moves lower, or top up once the up trend resumes (not a 'racing train' uptrend, but say when it hits 48/49 cents). Every day that passes is another day closer to news, so a couple pips higher in a few days is not a big risk, and the possibility of a couple pips lower.. Well cheaper entries re also welcomed.
6) Lastly, look at the big picture. Is there near term news expected that can keep the share price stable? Or is there a possibility of a 6 months lull on news that will hurt the stock you plan to enter? (Not a chance that happening here). If you truly believe this will be ~$2+ in 6 -12 months, do you really care whether you pay 44 cents or 48 cents? Getting the perfect entry point is more critical to a short term trader than a longer term trader. I am not sure what your goal is or what your trading style is. But these are questions you should ask yourself.
All the best.
Cheers
CT
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