Issues With RNS Based Trading/Investing – Simple Logic

Issues with News(RNS based trading)/investing are:

1. you do not know when it is expected
2. you do not know what it is or will be
3. you do not know at what price it will come
4. you do not know what is the max the share price will go up to.
5. you do not know whether and RNS is not something designed by Institutions.

For example: Let’s say a particular stock goes down to lets say 5p and then the long awaited RNS comes and I get a bullish signal and I enter the market at 7p.

Lets assume that on this long awaited RNS the share price can go up to 100-200% up but what really matters is point 3 above i.e. at what price the RNS came in. Lets say it it came in at 5p and the stock goes up by 200% so the price will be 10p. At this point the person who bought at 10p will NOT be in profit. He will barely break even. A person who bought at 10p+ price will still be in loss.

On the other hand, because I entered at 7p price I will be up by 40%+ at soon it hits 10p and if the market carries on further I will make more and more profits. In this example, in effect I have bought at low price and sold at high price. Whereas people who bought at 10p or 10p+ will still be either in break even or loss.

It is simple logic.

Remember: It is a war, plant it or lose it

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