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one thing I've noticed in markets like this, and this is my first experience dealing with this sort of phenomenon, is that it's interesting to see how margin calls affect price movements in really low volume small cap names. I own a company that's traded OTC and I've seen it happen a couple of times, as soon as the price hits a certain level, the margin call is triggered and a huge sell order is executed, and this usually knocks the price down in excess of 20%. If you're on top of this, it presents a great buying opportunity as these people, or so I've noticed at least with this particular equity, eventually move their way back into the position.
kind of ties into what I said earlier about timing. nobody can time perfectly, but what makes someone a professional investor, to a degree, fund managers in particular, is their ability to move in and out of their holdings and take in incremental profits. I guess it's something that just comes with experience, and living, breathing, eating, and sleeping in the market every day of your life.
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Last edited by slingshot on May-21-2010 at 03:03
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