I posted what I had done with my KRED on the day the CEO issued a press release saying how come the price is so low. I was surprised that no one questioned or criticized or agreed with my actions. So I’ll post it again.
Saul
Here’s what I did with KRED when the CEO put out his release. It had closed at 26.9 cents the day before. When I read his release I bought a little at 28 cents, but the price quickly ran away from me before I could buy more. When it was up 30% I was amused. When it was up 70% I thought this is ridiculous! Up 70% in one day because the CEO said “our results are real” (which they should be anyway).
I had felt all along that KRED was the weakest of my three little penny stocks because of its low margins due to its need to manufacture and ship a retail low margin product, etc. (Compare this to AEYE). Even if it can outsource the manufacturing, it still costs. So I sold a considerable part of my tiny position at about 45 cents. When the bid dropped below 45 cents I quit selling and decided I’d hold the rest of my now minuscule position for the time being.
One thought that comes to mind is how quickly you acted, both adding and selling. For that day at least it required a very active approach, active and decisive. It can be hard to draw a line between that and impulsive. Of course it was only possible because it was a company you already held and followed,
I beg to disagree with you. If I had held a stock for three years and sold it for a 70% gain, you would say I was a good investor. But because I got the same result, by accident, in a day, you say it’s trading.
I’d say it’s common sense. When a stock you hold goes up 70% in a day, and you know the reason for the rise for sure, and you know the reason doesn’t make any sense, it’s time to take money off the table. The fact that it went up all that way in a day is irrelevant.
A trader buys with the expectation of selling in a short time to make a small profit (usually 1% to 5%). This didn’t qualify in any way. I didn’t buy with the expectation of selling (in a short or even medium term). I just had more confidence at 28 after the CEO’s words (thinking it was a low price). Up 70% at 46 or something was just a ridiculous response. So I sold as much of my position as I could.
I beg to disagree with you. Every time you say, “It’s common sense” or someone else says, “I feel it in my gut” it is not any different then a trader using charts. You are saying the market is not rational and I am going to take advantage of it and make money. All the same to me.