RE­AL­ITY CHECK

Finweek English Edition - - SIMON SAYS -

Sim­i­lar to CoAL, Chrometco ran from 8c in De­cem­ber to 45c dur­ing May. But then re­al­ity struck − the com­pany’s re­sults re­flected a mas­sive loss and the stock headed straight back down, trad­ing at 10c as the re­sults came out on the last day of May. Some traders would have done very well with 500% gains pos­si­ble (but that gain would’ve re­quired per­fect tim­ing of both the buy­ing and sell­ing). The sell­ing part is the re­ally hard part. Do you take a small profit or try for the large profit that may never ma­te­ri­alise, re­sult­ing in a loss in­stead? As I said above, I just stay away as the risks are un­ac­cept­able for me.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.