I just wanted to thank everyone for all the interesting and helpful information on this forum, some of which is very entertaining - all the bitching eh. Ha ha.
I just wanted to share with you my first decent trades. Previously I was a bit of an investor, based a bit like Tech/a system, where I concentrated on good fundamental systems to select shares and keeping them for longer terms ie, 2 years with shares prices rising 50% to 200%, But this doesn't bring in the bacon today.
After reading this forum and the monthly share pick, I noticed that a lot of the people here, as Tech/a mentioned previously, tend to trade the small stocks eg around the 20c. So I started looking at these and thought - what a risk. Tech/a have you decided to get back into these stocks as you mentioned previously??
But due to necessity I threw Warren Buffet ideals out the window and decided to try the 'trader' hat on. Armed with Bedford, Huntley and Guppy ideas I decided to have two accounts - one for the investor and one for the trader.
Firstly as everyone here and on sharescene were going on about AZR , I decided to jump in but I fear too late at 21c, and then it started to fall and I thought here goes. But anyway it is still hanging in there. Fear held me back till too late.
As I have read constantly fear and greed can be your downfall. They nearly were. On Monday I was just watching MCC waiting to re - enter after a pullback, where I made a 20% profit previously and I saw someone buy 1 million dollars worth and I thought OK - if they are willing to risk that much they must know something I don't know. So I bought in at 4.95 with a sell price of 5.45 in mind.
On Wed the price went up to 5.95 in the afternoon and I was greedy and thinking it might go up more- so I waited and then put in a sell order for 5.95. But it fell back to 5.58 I think and I thought why don't you buy in again at 5.58 and profit on the way back up. But fear got the better of me as I didn't know where it was going to go. On Thursday I was ready to sell at 5.75 and nearly changed my sell order. But I left it at 5.95.
As it was, on Friday it went up to 6.10 I think, but I was out. If I was home I may have tried to change my order and go for more money. But when I got home I was happy with my 5.95 sell order.
But a good lesson learnt. AS they say here - Let your profits run. But as I cannot at this stage determine when a trend is going to falter, I decided to set a sell price and stick to it.
Any tips here to determine when to get out. I had decided to follow Guppy's idea of being like a sparrow - go in and get little profits at a time. Hopefully a lot of little profits will add up.
But is it better to go with the big volume trading shares like PNA, AZR, BPC etc or the rapid rising shares like MCC with a smaller trading volume??