KAT Exploration Inc (KATX)

[Eagle777]

elcheepo, here is one of my “trading rules”. Always buy into extreme oversold conditions, ESPECIALLY when there is irrational, emotional selling. The risk reward is very, very favorable. Following this “rule” would have put you into one of the best swing trade opportunities in the last few months in this stock, a nice 50-100% swing from the lows. Those looking for Armageddon lows are now sitting on the sidelines, with zip, zero, nada, trying to scare everyone so they can get back in.

If you believe in this company long term then get in cheap and just hold for good things to happen. Following the advice of some short term flipper might not be a good idea for you, a long term trader. Do you really want to be chasing the stock and be buying at the highs, after news comes out? Let talk about risk vs. reward. If you buy at 3 cents and poor results come and the stock goes down to 2 cents, that is a 33% loss. If good results come out and the stock goes to 6 cents, that is a 100% gain. If very good results come out and the stock goes to 10 cents, that is a 300%+ gain.

Never confuse long term trading strategies with short term trading strategies. Following short term flipper advise will have you do the dead opposite of what is right for you, a long term investor. It would have you average way up your PPS. BAD IDEA. You want to average down when possible. I loaded the truck at the lows and now my average cost basis is significantly lower. It won’t take much for me to be very happy.