I don't think you understand me correctly. Lost in translation.
Some things that I have come to recognize as an investor:
1) Not every trade is going to be successful. Therefore; it is best to have some trade rules. Stop losses (mental) helps to take emotion out of a losing trade. Diversification helps to de-risk one's exposure. Money management is another de-risking tool. I tend to invest more when I feel the positive trade outcome is more likely. Liquidity and cash allows for unanticipated opportunities or prudent hedging.
2) I try not to hate or love a security. Lots of investors have come to hate NNVC. And, they also have lost sight that NNVC can, at times, provide superior returns on the long side. I tend to be more out than in concerning NNVC, but I still have made profits with this stock. Rarely have I lost money on a trade. Some trades have paid off very nicely. Some have yielded very little. Overall, compounded profits with NNVC have been superior for me. But, I wait for opportune and high probability trade opportunities as indicated by the TA (technical analysis) that I employ--this with fundamental analysis, etc. TA requires a fair amount of discipline, best without emotion, and with the acceptance that there will be losses with the probability that winners will outnumber losers. TA also is best when used with discrimination. Not all securities are good TA candidates at all times. Some TA situations are better than others.
3) Time is an important ingredient for a trade. There are always opportunity costs associated with trades. I have money tied up in "A" that I can not invest in "B". Settlement times and day trading restrictions can also be a factor, as they limit my ability to churn too quickly. You threw out in your post that a strategy would be to hold a position until profitable. Not a strategy I employ or recommend. My last NNVC trade was 5 sessions only (I'll break it down more later).
4) Time can allow for a trade to mature. I often miss the best timing for a trade, and start out flat or in the RED. But, chances are it is the volatility that drew me into the trade; therefore, time is usually on my side. Volatility is synonymous with the random walk of potential price outcomes for a given time. When the price outcome is not going as planned, that is when selling rules have saved me, more often than not.
So, let me break down my last NNVC trade: I bought in when NNVC was showing oversold on the 60 minute chart. A strategy I have been employing routinely and successfully. My trade was very modest, as the TA was good but not great, and the risk with NNVC has become high. I quickly got into the green and had a pretty good profit (6%) at one point later in the day. Greed got the better of me, and I decided to hold, despite NNVC getting overbought on the 60 minute. A tactical mistake on my part. By the way, a 6% return on a stock in one day is pretty good in my book. The following session I started in the green, but things turned quickly and I was in the red. Something occurred, that I had not anticipated (but should have). NNVC was still going through the last throws of Russell delisting. Not a huge loss at this time, but got close to triggering my mental "stop loss". The next few sessions, NNVC was range bound, and this morning I had the opportunity to sell at a very small profit (less than 1%). As trades go, this was a poor one. I think the Russell activity was what derailed the trade from being a superior one. That and greed for not closing the trade out the same day as I entered. I can not blame my TA for the final result. Results were on me, as always. But, I still got out with a few coins of profit, and will be looking for future opportunities to trade NNVC.
I do not recommend that most try and trade/invest in NNVC under current circumstances. I also think NNVC is worthy of being on one's speculative watch list. Also, NNVC has been one of my best trading/investing stocks over the past three years. I have had some great runs with this stock. One run lasted almost a year (one position without trade and up 300%). I recently had a profitable trade of near 50%.
I find it interesting that NNVC has not broken down even further from current prices. What I am seeing is that there are still buyers for this stock. We know some of the buyers are institutions and an insider. What this tells me is that, the buyers see something of value in NNVC. NNVC is likely to remain a volatile stock, with eventual outcomes at the extremes. Until, unless, NNVC gets on track, it will mostly be a good trading stock for the astute investor. But, apparently, some still see NNVC as a long term value play as well. I don't need to expound on all NNVC's negatives. There are more than enough pundits for this case.
