Your last two sentences hit on the glory of the freebie discipline. If Sheritt is one of 200, its effect on the portfolio is near zero,...some are always going up,...and most trades give you freebies plus profit,...and the evergrowing profits plus initial capital are constantly looking for the next hot thing,...and there is always something hot to chase in any market, like oil and gas unit trusts last two years, dot commies, techs, miners, and biotechs the three years before that and goldies now.
Selling to freebies is the discipline,...you forget about the emotion. Just slowly sell out as the stock climbs, 1000 today, a thousand tomorrow,...keep a thousand or two at the end. Then you won't moan a year later when the POS does a twenty bagger in a couple of weeks and you never got any at $2.00 and now its $30 like SWG,...still holding 1000 SWG freebies.
Doing the same thing now on the SWG area play SRL,...got 7000 of those at $1.00, sold 1000 at $2, another at $3 and another at $4,...so I have $2000 profit and 4000 freebies to sell higher. MXY is next, another area play on SWG. That is a perfect example. Some you only get the freebies out, some you lose a bit to hold 1000, but this is rare if the stock had momo and good fundamentals.
It's a long term strategy with a buying and selling discipline and it works. I have lots of freebies that wither away only to be reborn later like Red Emerald turning into MDW, or Conquistador turning into ORN. Have some that just sit there and look like puke, but they don't affect the valuations of the portfolio.
Works really well for things like ABZ, VSM, DMW, GAM, SUF, WLF, MAE, CBD, CNI, NRI, BAY, FGX, SWG, GBG, NSU, IVN,..etc., you know some day they are gonna pop,...just don't know when. If you have good diversification and they are freebies, you won't get spooked into selling out before the big payday. Also you can forget about the freebies and concentrate on the portfolio that ain't freebies yet, and the next big things like CDY, DMX, ORN, ALQ, CLQ, ETG, ORZ, XCL, MXY, SRG, YSP, AGI and whatever other POS's are out there with a good story and momo. |
