Know when to sell.
First off, I am a speculator. I sometimes buy and sell the same stock within hours and other times hold some on the back shelf for years. I do not consider myself a day trader as it’s more about the risk / time / profit ratio that I consider. I usually only buy speculative stocks on the Venture exchange.
Some times I am happy with a 10% gain and other times I do not worry about a 20% loss. I often tell people that it is easy to buy stock but it’s timing the sell that is the hard part.
I notice on many Stockhouse threads that posters complain that the stock they bought is down. Whose fault is that? If a stock is moving up, take some off the table. Never get greedy. It’s a simple thing to state but it took me years to appreciate the fact that stocks do not all "Go to the Moon".
Understand your exit point. A good example not to long ago was a huge spike up on GGL Diamond Corp (TSX: V.GGL, Bullboard). I believe it topped at $1.50 range. I had held GGL for 15 months at an average of $0.27 before the run. When it started to move I peeled off 25% of my holdings at $0.50, another 25% at $0.75 range and then the rest at just under a dollar. I posted on the thread at the time that I was now out of GGL and the thread came alive with negative comments toward me for selling. Yes a few days later it hit $1.50, but not long after that it was back to $0.30. Posters then complained about management and what a crappy company GGL was etc. There is nothing wrong with the company; it’s the posters who did not sell when they had a chance to. (I have re-bought a position recently in the low $0.20s.)
On the flip side I have held Highbank Resources (TSX: V.HBK, Bullboard) for some time now and although I sold a bit on a spike I am holding a substantial position below my average. At this time I do not need the cash, nor the tax write-off so I just leave it on the shelf and wait. I am in the same boat with Solitaire Minerals (TSX: V.SLT, Bullboard) and North American Gem (TSX: V.NAG, Bullboard) but I have done my DD and I trust my decisions.
As far as some quick flippers in recent times Noront Resources (TSX: V.NOT, Bullboard) and Castillian Resources (TSX: V.CT, Bullboard) are examples of lucrative fast day trades.
In conclusion, do what you are comfortable with. My rules are never buy on margin or credit and only play with money you are prepared to lose. I also usually focus on resource stocks because this is a sector that I have learned about and understand more than other sectors. I am comfortable, therefore I can make better decisions.
Good luck and big profits to all.
Disclosure: I currently hold positions in stocks in this story HBK, SLT, NAG, GGL, along with others not mentioned that are listed on my Stockhouse profile page.
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