How do you respond to positive company announcement?

[Herms]

Hiya guys,

Im a newbie here please be nice to me . I went through the ASX announcement this morning and found out some positive news for GGY regarding uranium stock. Right now they are trading at 0.13, do you guys think it's positive to just jump on the band wagon and buy as much as I can and hope that it would go up the next hour ?


Cheers.

Herms

 

[alphman]

First rule of thumb is always do your research before buying anything.

As a start, you should read through some of the previous announcements the company has released regarding this project. If they have set higher expectations, then the market can and will burn you.

 

[doctorj]

Right now they are trading at 0.13, do you guys think it's positive to just jump on the band wagon

Be weary of trading news. You have to assume that others are (a) better equipped to interpret the news than you are and (b) already knew long before it was released - that is, most of it has already been priced in.

buy as much as I can

Please, please, please do a search for 'position sizing' and 'risk management'. You might get lucky once, you might get lucky twice, you might even get lucky 30 times in a row, but at the end of the day, "buying as much as you can" will come back to bite you.

and hope that it would go up

Plan your trade and trade your plan. Might be worth along looking up risk/reward here at ASF.I'd love to hear from anyone here that's managed to trade the news on ASX juniors successfully over an extended period. I've seen enough leaks to believe it's a mugs game and the traders are the last to know.