So i sold my NAK at 4.5p for a 20% profit. Not my best trade ever but certainly not my worst.
What have i learnt after this trade?
- NAK was up at a PE of 25 before this AM, that was too high. Buying in single figure PEs and selling at the 25 level is the way to go
- Investors/traders are really only interested in the headline profit figure. Profit up = SP up and vice versa
- Entry level was crutical here. Under 4p minimised the downside and enabled me to make a profit
- NAK was able to get to a PE of 25 tho which is encouraging for future trades if the entry can be nailed nice and low
- Some of the bigger rises come when a company swings from loss making to making maiden profit
- A longer period of being in profit and profit increases makes for a more reliable forcast of future profits