lowtrade

[lowtrade]

Your 100% correct any up listing talk is sooo ahead of it's time it's a joke people are talking about that.

Since 2003 I've personally only seen 1 OTC start up, up list. And that was to the American exchange who's requirement were well below the NAZ, back then. Basically I'm saying never happen !

What do I expect for CDNL now that I have several weeks interest involved.

My original expectations to see funders manipulate price for profits, like I saw 6 months before on the CDNL chart has been proven wrong!

What's my feelings about anyone's owned shares.

When there is no manipulation, one should expect TA & charting to have a high amount of reliability. But there is no logic to CDNL's chart or TA, ever since the flag bounce didn't break top resistance. It's not following normal plots or paths for the patterns or indications in the data.

So I have personally lowered my expectation on making big money there. Well I mean HUGE money there. My trade plan was altered to protect capital. As trade plans should. Since I see little chance for a major run to 10X in the near term. I no longer feel accepting a 50% loss as reasonable. And have my acceptable loss changed to a minimum gain of 25%.

My personal GUESS is because price broke below .016 (true value), which was also major support, it will get lower. Next level of concern is .013. If that's gone, I'm gone. And I would hope others would take profits rather the watch their money drift away.

Everyone that trades any market Needs to realize capital preservation is just; maybe more; important then gain. You can always protect capital and re-enter if things improve with a stock. But if 50,75, or 90% of your capital is gone when a true reversal takes place. It's much harder to make losses up.

My mantra:
Don't except large losses on a decision to hold a falling price. If your hopes & expectations become true. Re-entry is always possible, and always more profitable.

OK

It's time to talk capital preservation.

When NOT selling at a planed expectable loss figure. You can easily become what is known as a bag holder. Your at a 50% loss or more. That's when to conceder a get even plan.

First you have to mentally write off the total value of the trade. Or take the large loss ASAP. Because if your swing trade became a long hold mentally, you already wrote it off in your mind as dead money. Which you will not touch until it corrects to a break even or new expectable loss point, in the far future.

It's dead money!

Now that I have all the mind options out. Let's work on a come back plan. When a stock increases it produces larger gains then the losses on the way down. MATH!

So if you let your total investment sit, you are not increasing your returns, on any reversal. If you run the number and choose a percentage your comfortable with, you can make back what was lost faster. Sell 25% or 50% or 75% Run the numbers and pick a plan.

EX:

$1k in a $1.00 stock for 1000 shares.
The price falls to 50 cents for a 50% loss.

Sell half and hold 500 shares at 50 cents and $250 cash.
Say a reversal comes @ .25, buy back low with the cash taken out, $250.

Now you hold 500 share @ .50 and 1000 @ .25. It runs to .50 and you hold 500 @ .50 down (50% still) and 1000 @ .50 for a $250 double or $500. Your total of $750 if sold. $250 + $500 Is a 25% loss OK? sell all. Many times I'd sell have here.

You don't sell
If it continues up to .75 now you hold 500 @ .75 and 1000 @ .75
for $375 + $750 = $1,125 or a $125 profit.

And the price hasn't event reached you $1.00 break even, if you held from your 50% original loss.

By selling and holding cash to reinvest you can re-coop your loss faster!!! Or reach a new expectable loss figure sooner.

Food for thought.