Short Term Trading Week Starting: 5th Sept, page-177

@SaberX
welcome to the world of trading where things are as complicated as life itself...

STT has many gun investors IMO and quite often they are right with their entries and exits... However, no one is perfect IMO... Yes, sometimes people get lucky in picking the right entry and even luckier with exits... In other words, no one can get it right all the times and if some one claims it they are full of BS... so the trick is... we need to be right more often v being wrong... Easy said than done...

So what shall we do to make the most of this wonderful opportunistic place called share market? By the way, this is also the most deadly place for gamblers... Gamblers here IMO are those who blind invest their hard earned with a desire to be rich over night... NO SUCH THING HERE... so IMO we all need to be very careful with what we do here...

1. Protecting your capital is as important as making money. So if you are not sure about something, it means its not for you.
2. Find your own way regardless the time it takes... may it be one year, two or three... It will come good if you keep trying IMO... till then perhaps paper trade or if learn as you go invest small... mind you no capital is a small capital... This is reflective from the performance of those who started a public portfolio with 5k and named it 5 grander... some of the skilled investors/traders are up 100% like @valen1828 and some are up 50% plus like @minoil, @TraderGT, @webbj, @Malaga...
3. Once your strategy is established may it be based on TA or FA, stick to it... of course you can improve it as you go along but keep the foundations IMO.
4. Work hard but don't try hard... Means keep researching to find the next winner but don't force yourself... A winner will come by when your mind and your gut will tell you...
5. One way I have found helpful with my entries and exits is the market cap of the stock... It helps in many ways like it tells me
i. when to go nuts with buying for example MNE today... I am buying heaps as it has 135m heads on issue, 2.5m market cap and 1.2m cash plus its backed by decent management. They just need a good project and it might double bag IMO... nothing certain of course.
ii. when to dump all and run... For example GMN at 10c had a market cap of 50m approx... I bought at 4.3c average... GMN made 18c but I was happy with 10c... Yes, it bothered me should have made more but the market cap looked good enough to me so I took my profits.
iii. Lastly when to just hold calmly regardless the market reaction... IAM, PAK, JCS, WFE, AR1, FNT are few examples... Their market caps IMO are decent v their potential... So I am hanging in...
6. Market is uncertain so whatever you do, you still going to get some wrong... In some cases more wrong than right... In my case, I need only 2 to 3 winners each year... these are the normally the ones I hold large normally happened to be lucky enough to bought them right at the bottom or that's what I believe... Yet, out of many only few comes good...
7. Buying at the bottom... here comes the market cap thing handy again... Like FNT at 3c had a market cap of 1.2m with 400k cash plus other factors like 4 drill rigs, decent gold-silver-copper-zinc projects... Looked seriously cheap and did well with few weeks hold... Although I am still as I think market cap is too small at 6 plus cents. so picking up a right price works well for me.
8. Letting the runners run... when your stock happens to be in the right trend letting it run until you think the market cap is too high... Like IAM which I bought at average 0.9-1c... Happened to be in the right trend due to multiple factors which I have shared here quite a few times... So I have let it do its thing while increased my holding with small parcels...
9. Avoid lifestyle things... For example I largely invest in small caps and have learned the hard way that managements paying too much to themselves with holding small amount of shares tend to destroy share holders wealth... So its a big avoid IMO
10. Small caps are largely like 99% tend to fail... they follow a rinse and repeat cycle... for example, they go for every hot thing every cycle... raise funds buy a new project share price gets pumped and ultimately dies... By the time cycle is done, they have too many shares on issue hence they do consolidation, name change, management change and a new raise... and a new project in the next hot thing... at times, companies go into suspension ultimately but same people start new companies with different names... RINSE AND REPEAT... what I try to do? I try to enter when they start a new cycle quite often makes you decent returns... so just be mindful while investing in small caps... Yes, one out of few hundreds do become successful...
11. TREND IS YOUR BEST FRIEND... the more I trade/invest the more I feel that this is the only reality in the market... so try investing at the right place at right time... if you are not sure avoid...

I know there are many more things and methodologies to consider and that's where STT knowledge library comes handy... thanks to @KDoc, @TheGladiator and @Freehold for putting this valuable resource together...

P.s none of the examples in this post should be considered more than mere observation as I am still trying to find my own way to investing...

Cheers