WBT 0.43% $2.31 weebit nano ltd

With regards to the share price drop (today and on all other...

  1. 223 Posts.
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    With regards to the share price drop (today and on all other days), I too get frustrated.

    But I think it is worth re-examining what type of company Weebit is. It is pre-revenue, and cannot be considered anything but a risky asset (in terms of the true financial/economical definition). As a result, we have to expect large swings to both the upside and downside, no matter how frustrating it seems at times.

    If you can't handle the stress, then it is probably worth looking at how much you have invested. Rebalance if you need to so you can sleep at night. If you don't want to suffer the stress of seeing your portfolio get hammered by large swings, then stick to ASX 50 stocks, though they too can suffer (refer to the GFC).

    WBT at current pricing is providing an opportunity in many forms. An opportunity to trade the swing lows and highs, as well as an opportunity to reap massive financial rewards if things play out how we all hope. But that comes at a cost, which is the significant swings in share price.

    If there is no risk, then there is no big reward

    When I think of why I am truly frustrated, it is probably because I don't have the guts to sell and buy back in and take advantage of these swings. When it hit $9, I got greedy and think it's going to $20. I've invested as much as I want to now, so when it drops to these low prices I have no more to put in so I get frustrated that I missed out on that one type of opportunity. All I can hope is that the longer term opportunity pays off in spades.

    But I am also under no illusion. I know this is a risky play. Despite all the hopium on this forum, until Fab 1 deals are done, customers are signed up and revenues are coming in thick and fast, it will always be risky. But when it is no longer risky, the price will no longer be anywhere near $5 and we'll all be moaning how we could have bought at $5.60.

    In summary, I am more frustrated at how my own trading psychology has failed me rather than blame any shorters. Despite everything you read about it and how obvious and easy it seems (until you're invested with significant money), market psychology is such an underestimated beast of a thing.



 
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