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nod - Fri, 30 Dec 05 :

VS - I bought twice at 7.75p on intraday dips. The first at the end of 2004 and the second in the dip earlier this year.
I even hold a few bought at 4p in March 2003 - that really was the darkest hour. I sold 90% of those but kept a few in my portfolio to keep me interested.

I don't really agree that the buying price matters. It's the profit you bank that matters. In 2003, you could have bought at 2.5p, 8p or 12p and made a very handsome profit on any of those trades. Obviously, if you bought at 3p your percentage increase is much greater but your trading profit depends on how much you invest (not the buy price) and, most importantly, when you sell.

Quite often it's easier to buy £10,000 of a share when they are rising strongly but it's very difficult to buy £500 in the same share when they are in the pits and nobody else is buying. Hands up those who bought TGP below 8p

It's also very difficult to hold a share when it has risen 200%. There's great temptation to sell.

A 100% increase on £10,000 is a £10,000 profit. A 1000% increase on £500 is a great percentage increase but only a £5000 profit.

I'd like to think we could all make both trades but not many have the cojones to buy any in the darkest hour and the cojones to hold for a ten bagger.


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