Daylatedolarshort, thank you for the feedback and good luck with your position! I’m glad to hear I’m not the only person optimistic on this trade.
You are correct that the flip side of all the selling is that every sale has a buyer willing to take the opposite position.
In one day, with a volume of 5,667,052 we dropped 4.6 cents from the opening price, compare and contrast with 12/18/2009 with a volume of 2,214,040 in which we dropped 14 cents off of the open. This shows that this close to the bottom there are more buyers willing to snap up the shares being sold during a larger sell-off. (But it is still a sell-off of course, which is bearish.)
I’m not suggesting that the bottom is in at the current price, the support at .14 is being tested and the next support is at .10 cents, and even that will have to be re-proven before I’ll call it a bottom. The recent battle which held the low at .18 never formed a valid support/bottom, according to my work. The valid support is at .14, which was pierced on Friday, another day or two closing below that will invalidate it as support. Should Monday close above .14 it will remain valid.
The way you trade sounds like my own way, I buy at support levels were others are selling and fearful, when the price looks “cheap”, but I only allocate part of the money dedicated to ERHE, so if that level doesn’t hold I have more bullets allocated to buy even lower should that support level fail.
So far, I’m obviously underwater like everyone else as I am bullish a falling share price. The only thing I have “achieved” is to keep lowering my cost basis on each new buy, so if there is another bull run I will make 100% - 500% - ?, at a cheaper price. I’ve allowed at least 2 years for this to occur, and it is only one bet for me and sized as total risk, so I’m not bothered with the price action until either my target is hit or I lose my bet.
Our style is different from the average person in this group, but our objective is the same. To make money. Not only that, to make a large return on a high risk/high opportunity share. The difference being, those who bought in at 8o cents when everyone was hopeful and enthusiastic, need to hit a sp of $3.20 to make 300%. They are also in more pain and frustration than me at this sp. I see the decline as an opportunity to lower my cost basis further. I also need a sp of about .88 to make a similar 300%, and I’m not as far underwater, so I feel more comfortable and optimistic, looking at the multi-year chart and having seen that hit several times before.
The ceiling is always higher in the darkness. - Confucius
