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Re: free_man_n_paris post# 4060

Thursday, 05/05/2022 11:59:47 AM

Thursday, May 05, 2022 11:59:47 AM

Post# of 7212
Sure. So this is extremely important for investors in low floats especially me as I’m getting close towards a couple % ownership of this stock. I’m not close to 5% but have a couple % of the float.

So I can’t sell at a decent price if I wanted to do I have to wait for liquidity days. What are they? They are days when the volume comes in to do so. This usually happens when a catalyst hits. For example, if they came out with a PR today stating all the good news we know, u will see volume pick up as new investors will see that, buy, drive up the price which can be done on air. Then once it is up about 20%, it will set off scanners and more people will find out about this gem and so on.

Then the next day there will be a lot less volume and we will need a new liquidity/volume day again. Perhaps another pr or an s-1 showing they are uplisting to the Nasdaq etc. When another catalyst hits, those will be the days when the LONG and PATIENT can start unwinding some of their longs as new investors come in. Usually this entails taking out your original cost or close to it to cover your initial expense.

Investing in low float stocks takes steel balls. Why? Because the price can drop one day 50% on basically no volume and the next day it climbs back 60% on low volume. So how do you win? You sit patiently through the low volume painful days, ignore the day to day, and then manage your book accordingly once the catalyst start coming in. Regardless, for me, this is going to be an investment that I probably wait for several liquidity days to pass before I optimize sone of my returns.

I hope this helps

Everything I say is my educated opinion and is NOT investment advice

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