Should I bail out?

Discussion in 'Penny Stocks' started by legman, Sep 10, 2019.

  1. legman

    legman New Member

    Joined:
    Jul 4, 2019
    Messages:
    12
    Likes Received:
    2
    Im in NUGL at .54 and for some reason it went south on me! Now down to .35 or so.

    Ive made money here in the past couple months so my original money is still there, BUT, should I bail at this low, then buy back in, or would I be wasting my time/money?.

    Thanks for helping a new guy.
     
  2. StockJock-e

    StockJock-e Brew Master
    Staff Member

    Joined:
    Apr 3, 2016
    Messages:
    9,524
    Likes Received:
    3,526
    Nobody can tell you how you should be managing your own risk without knowing your complete financial situation.

    BUT, a simple rule I stick to is "when in doubt, get out."

    Protect your capital, there is always another trade.
     
    Onepoint272 likes this.
  3. Bodacious

    Bodacious Active Member

    Joined:
    Jul 6, 2019
    Messages:
    274
    Likes Received:
    207
    Sage advice from StockJock, it's just like he said, there's always another deal right around the corner, and try to never get caught up in the fear of missing out (FOMO).

    Good luck moving forward.
     
  4. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

    Joined:
    Apr 26, 2016
    Messages:
    1,692
    Likes Received:
    2,204
    NUGL appears to be running out of sellers at 35 cents as you can see from the trading volume. Today it appeared to find support at 35 cents as it closed high range for the day, and price may need to go higher to find sellers to keep the market for the stock liquid. In other words, there may not be enough supply (of stock being offered for sale) at 35 cents and when anything is in short supply its price rises.

    Daily bars:
    upload_2019-9-11_1-47-53.png
     
    #4 Onepoint272, Sep 11, 2019
    Last edited: Sep 11, 2019
    T0rm3nted and Stockaholic like this.
  5. legman

    legman New Member

    Joined:
    Jul 4, 2019
    Messages:
    12
    Likes Received:
    2

    What you said makes z lot of sense. And while getting out is easy staying put is what was on my mind.

    In so far as im in zt .54 would it be smarter to sell noa, then buy in at .36?? Or is that not the right way to approach this?

    Thanks a bunch
     
  6. StockJock-e

    StockJock-e Brew Master
    Staff Member

    Joined:
    Apr 3, 2016
    Messages:
    9,524
    Likes Received:
    3,526
    If you bought this with a trade in mind, and it went the wrong, typically an active trader would bail.

    If you are investing for longer time frames, then its different.

    Also, never let a short term trade turn into a long term investment unless you planned it that way.
     
  7. Onepoint272

    Onepoint272 2019 Stockaholics Contest Winner

    Joined:
    Apr 26, 2016
    Messages:
    1,692
    Likes Received:
    2,204
    As StockJock-e says, active traders don't allow big losses and for good reason. If you bought at 0.54 the move to 0.35 is a loss of 0.19. The percent loss is 0.19/0.54 = 35%. So now to break even you need a rise of 0.19/0.35 = 54%. It gets worse, e.g., a 50% loss requires a 100% gain to break even, a double, which doesn't happen often and takes a long period of accumulation by the smart money to prepare for such a move. A 10% loss on the other hand only requires an 11% gain to break even. Nevertheless, you need to evaluate the current situation and trade out of the position.

    Why do I say trade out of the position? Because on the weekly chart, the stock is clearly in a downtrend and only short positions should be initiated unless you are an experienced and adept trader who can negotiate a countertrend trade. Secondly, the stock is a P.O.S. It is trading under $1 for good reason, it's a P.O.S. It takes special skills to trade special situations like this. The guys successful at trading penny stocks are not newbs. If you're a newb I'd suggest gaining more experience trading the stable boring stocks first.

    That's my opinion, but I'm not a penny-stock trader. I think StockJock-e has experience with the pennies.
     
    #7 Onepoint272, Sep 12, 2019
    Last edited: Sep 12, 2019
    T0rm3nted, Stockaholic and Bodacious like this.
  8. Bedivirs

    Bedivirs New Member

    Joined:
    Dec 9, 2020
    Messages:
    1
    Likes Received:
    0
    Risk should always be justified, I'd suggest to not take risk if you're not sure about it
     
  9. Small time investor

    Joined:
    Aug 10, 2020
    Messages:
    160
    Likes Received:
    17
    Most traders look at the numbers and that is only part of the story. What does the company do? Are they good at it? What are they saying in the news/blogs?. If a company has a good foundation, the stock may just be getting manipulated down so that the manipulator can buy low. In order to buy, someone must sell. If your original thoughts determined the company good long term, it might be best to hold. Really depends on the level of risk you are willing to take. And don't get stressed about it. If you lose it all, accept it and move on.
     

Share This Page