Netcapital Inc (NCPL)

[LiveLife]

Hi Rose101, I will post my reply to your PM here since you are one of the moderators.

Rose101 05/31/19 - "Seriously makes no sense to flip this stock. It is a buy and hold as vstr is a professionally run company with experienced executive management with Yale, Harvard and MIT credentials."

Rose101 05/23/19 - "Just found about this lovely gem recently and looks like I was lucky to pick up shares at this temporary dip."


As to fundamentals vs technicals,

Yes, I started out stock/day trading 25 years ago using fundamentals but found company fundamentals often lagged behind technicals and the notions of "Buy on rumors and sell on news" and "Share price factors everything, including company fundamentals" were indeed true. So for the last 20 years, I have focused on technicals to become a Swing Trader to maximize the dip/pop swings of price movement.

What I have seen with fundamental "investing" (Buy and hope) vs technical "trading" (More realistic and actual share price movement) is that some "investors" fall in love with the stock and lose objective judgement and continue to hope even though share price and technicals show obvious peaking and retracement/pullback. Instead, "traders" will take profit to lock in gains and perhaps buy back once the retracement/pullback is done on rebound (next run), which maximizes trade gains. And if the next run is many weeks and months away, "trade" other stocks.


So what do I think about VSTR?

If you look at the 5 year chart, from 2017 to 2018, last two runs showed 100%+ gain from $0.002 to $.004+ and 150%+ gain from $0.003 to $0.008+ before share price retraced back down to below $0.004 where you entered the position in end of May 2019.



Below is 6 month chart and shows profit taking pullbacks of 100% gains at end of July and 200% gains at early August. If you are not sure what the share price will do moving forward, usually price will gain with bullish trend while MACD histogram bars are positive and rising above 0 with MACD line (black) rising above reference line (red). But price will fall with bearish trend while MACD histogram falls and goes from positive to negative and MACD line peaking and falling.

I consider MACD line (black) approaching and falling below reference line (red) signal to exit the position which happened on Monday 8/26/19. My sentiment on VSTR is bearish and anticipate continued pullback/retracement like 2017/2018. Of course, this is my "quick chart review" opinion only and you should conduct your own Due Diligence for your trades.

If you want to learn more about technical swing trading and be able to set Buy/Sell points to better predict future price movements of stocks, swing trading step-by-step instructions and my swing trading template along with my trades are outlined on the Swing Trading board - https://investorshub.advfn.com/Swing-Trading-Model-36395/

PM me with any questions and I will answer them on the ST board.