Welcome to microcap stock trading 101. The introductory class.
Now, class: What do we do when stocks we like are cheap, quiet, and no one wants them? We buy.
What do we do when stocks we bought cheap are making big, spiky runs on high volume? We take some money off the table. You know why? Because the stock will get cheap and quiet again.
Here’s today’s chart of NIHK:
My price target on the stock was $.13- longer term $.25. Today the stock is trading at $.15 on big volume after making a big, spiky run.
So, in order to move on to the next class- trading 201, what do you do? Take some profits if anything.
You don’t have to sell it all, and it could power higher. However, now, would be a good time to take a few bucks off the table.
Comments and questions are welcome.
I was wondering when you would rebuy this stock or where it would quiet down to .09 or .08?
Editor: We’ll figure that out at some point in the future. When the stock quiets down, watch the BLOG.
i was wondering where you think this stock will quiet down at? .09?
Editor: Will address that at the appropriate time.
this seems like quite a growth company i have been trading it for quite a while. i was wondering how much competition they have in this field
Cheers
Ron
PS Great site very informative!
Editor: There is really only one other company that does what they do. They have competed with them, and won a few and lost a few. However, they really seem to be getting traction now.
What is your call now in light of the recent surge of NIHK? Will it still pull back? If so, when is a good indicator to sell half or all?
Editor: Whew- what a great move. I believe the stock is going up because it is going up. I believe it is far more of a sell than a buy at these levels.
What would you think we should do now. With the spike I am incline to sell and wait for a decline, that is unless you think there will not be a decline
Editor: In my view, odds are there will be a pullback, but you never know for sure. If you want to keep some shares, just sell enough to get your principal back. If you bought at suggested times, you should be making a hell of a good profit, and isn’t that why we buy them?