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Should I bail out?

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

  1. legman

    legman New Member

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    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
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    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

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    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 Well-Known Member

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    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 at 2:48 AM
    Last edited: Sep 11, 2019 at 2:58 AM
    T0rm3nted and bigbear0083 like this.
  5. legman

    legman New Member

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    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
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    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 Well-Known Member

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    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 at 12:56 AM
    Last edited: Sep 12, 2019 at 1:50 AM
    T0rm3nted, bigbear0083 and Bodacious like this.

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