waiting for senegal extension, page-70

INXS22,

would i buy again now?

Well it's tempting under 10c as 10c is definently a resistant level but it has stayed under there for a few days now.

But my overall sentiment on the market atm is it is quite choppy and could indeed go lower. Also remember if the hole being drilled finds nothing it most likely will go down quite a bit more. Hence FAR is quite risky until we know the outcome of the drilling which should be soon, as price could move very quickly either way.

I try not to gamble as I dont go to the casino either, so the same principle applys with stocks.. I much sooner invest more money in other companies that don't move so much % wise in a week, also ones that have real profits coming in. Remember despite all the blue sky potential of FAR, many hundreds of spec explorer stocks had similar stories and are no longer in business now.

I am not saying this will happen with FAR as they have cash in the bank but either way their stock price in the short term relies on the hole being successful for oil. You only have to look at FAR price chart for the last 10 years that trading with the trend you can make money. Holding in for the long run you would have been very disappointed if you bought at a high price.

I'm not trying to make the most out of FAR by picking the bottom and guessing the top as I have no more insight then you. I just want to make decent money with the least risk possible.

The best way to do that I believe is I don't try to pick bottom or catch a falling knife. Believe me I have been there in the past and thought i'd pick the bottom with other stocks and have lost out, big time. I'd sooner wait for the bottom to form and a base to happen. Then as soon as it swings higher and usually you find a bit more volume occurs I'd look at buying some.

This is the reason I tend not to avg down in price as your risking losing more of your hard earned money. I'd be happier to avg up if the price had increased say 75-100% and then set a stop loss to limit losing profits. I did this with Atlas iron (AGO) i averaged up after buying in on them some time ago after being up over 50%.

I'd be happier to buy at a higher price when volume increases and momentum is behind the stock. I'd sooner go with the flow as soon it starts happening within 1-2 days. Hence why I watch this stock every day. As soon as the price chart and volume swings lower again after the rise, when the top looks to be set, I have a stop loss of somewhere between 15-25% of the high i.e 2-3 cents higher. I look to make a good percent of the trend..

At the end of the day like I said before I love the story of FAR and have read lots of decent posts on here, but after a few years of getting my trading strategy down better I take the emotion out of it and focus on money management. Cut my losses quickly and let the profits run. Even if I picked only 50% right or a coin toss of picking what stocks to buy, if I cut my losses before they get out of hand at say 10-20% max and let my winners run and make 40% I still make money..

At the end of the day you can't always be right when you buy but you can manage your risk. Also it's better to sell and buy again later down the track when you have got more chances of success.

Hope this helps. Spending time gaining knowledge and investing time in your decisions is your friend :-)


cheers,
fod