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Trading AXM, Andrew Forrest, and you

Discussion in 'Shares' started by wdongli, 25th Apr, 2012.

  1. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    AXM has been in the water for quite long time. Its lowest share price was $0.001. Its right issues at $0.002 has a big shortfall of subscription. Its 100 to 1 consolidation means the lock of the losses of its long term shareholders.

    It is sad to anyone around it, isn't it? Simple minds without the capability to invert would declare the death of everyone around AXM. It could not be true! The reality is most of the people around AXM should be losers but some would win out if AXM would not close the door!

    There are always something traders could not see. There are black swans always. The problems few could see the black swans would be in and usually the price crashes have scared the people burn money out before the surprises.

    ***
    Andrew Forrest bet on AXM. AXM would issue share bigger than $0.002 to Andrew's company. It makes me a little bit happy:

    1. I bought in at $0.001 for 1,600,000 AXM shares for my buying order of 10,000,000.
    2. It stabilized at $0.002
    3. Its price in transition time for 100 to 1 share, was traded at $0.205.

    I like this buffer $0.001, the gap of the market selling price minus my buying price, before Andrew moved in. I am just a little bit happy to see Andrew's movement but didn't feel excited as before 2011.

    ***
    All of traders were surprised by Andrew's movement. AXM has some gold underground but it failed to get them out for profit.

    Andrew tends to play or act strategically who seldom could be understood by the market crowd. It could be seen for what he did in Anaconda Nickel and Fortescue Metals.

    He was thrown out by the board of ANL but he struggled to lull some American Funds to bet on ANL and took ANL over and renamed ANL as Minara Resources.

    ***
    In 2006, there were no people could see Fortescue could be the third force in Iron ore sections but he made it.

    He tended to join a company or sector in mining when it looked very dismal. However he seems know future more than the past. AXM has the gold reserve. It needs capital, technologies, and excellent management.

    No one could win out for all of exploration and Andrew is not exceptional. However Andrew is not just a miner but a guy to get into the root without losing the sight of the future. To AXM it is a very good start and its share price could be viewed at bottom of $0.001.
     
    Last edited by a moderator: 25th Apr, 2012
  2. wdongli

    wdongli Well-Known Member

    Joined:
    31st Mar, 2010
    Posts:
    1,292
    Location:
    Perth
    Safety, risk, and lowest price

    My profit and safety should be sure by my behavior rather than what anyone else would do! There are four big elements decide the failure or success:

    1. remaining value or growth value of the business
    2. economic health locally or globally
    3. crowd sentiment
    4. participates' own personalities and cost

    They are intrigued together and react on each other.

    ***
    1. The cost is the most element to set the tone for the failure and success.
    2. The bad crowd sentiment often but not absolutely make fire-selling price, which often but not absolutely ensure the low cost
    3. Health economies tend to drive crowd sentiment, which could be logic while the hopes have not developed into over optimism.
    4. Sentiment driving by the expectation of economy health tends to over-price shares in the stock market.
    5. The relationship among them could generate some sort of self-fulfilled false assertions until the assertions collapsed in ruins and crowd pains.

    ***
    Bargain hunters could be hurt terribly if they fail to be conservative, intelligent, and holding margin of safety.

    Bargain is not about the price but what the consequences of the reactions of these four basic elements. It is about intelligent analysis of the environment and self strengths. It is about the safety criterion of your buying.

    It is about the remaining value in the holding horizon. It is about enoughness with great consciousness of the crowd sentiment.

    ***
    We need our own corners in the stock market; we need to move around our corners for calculated profit for our living and calculated risks for our affordable losses; we need the disciplines to service the crowd warriors for our profit.

    You have to be sure you are highly probable to make profit with the buffers for your human errors. Your success doesn't mean you are supreme or genius but your failure must come with your insanities, ignorance, and misunderstanding of the market.

    If it is not wrong to claim your absolute correctness, it is definitely not wise. Human is not perfect; below or above a threshold he acts for his benefit otherwise he acts against himself.

    ***
    AXM is not a great share. It actually is a dog in water for very long time. It was a money burner and has successfully terminated a lot of people financially. Human has to be selective intelligently and relatively to the contexts and conditions.

    Dogs have dogs days even not everyday is their day. Too many of traders or investors just have the brains as dogs to rush desperately for what they believe would be delicious on their dinner tables. They hope to get their days every day with very shabby belief, such as "stop losses." What're the properties of the losses? Could you stop the losses under all of situations?

    I thought it is right logically I should buy at the lowest price in the horizon I would like to hold. I don't refuse to use "stopping losses" as a tactical tool to correct my human errors but I would never hold "stopping losses" before and when I buy anything. I want to get the sure profit!

    ***
    In the market nothing could be forever. Rules themselves can benefit or destroy the money under different circumstances. You could be coward while you should be brave.

    Don't be a devout person on any words before it could be processed by a trustful mental framework. This mental framework should be complex but its output should be just profit for your portfolio. Could you be sure you have this mental framework? How could you get this framework?

    I do want to buy everything by following the basic right logic as I buy AXM this time. Buying, holding, selling, and balancing of portfolio would make the losers and winners.
    It is the war you have to be cautious when you put any money into the stock market and never let the paper profit gone as ashes in the air.

    ***
    Trading is a game for quick hands. A quick hand can have a insane mind. When a insane mind drives a very quick hand, it often destroys everything it touches. Quick hands and master minds of the useful skills and wisdom, could generate quick profits while the environment allows.

    We like to be masters even few of us are masters. I am not a master but a student who have the desire to be a master. I do believe it is a not easy way to be a master in any fields if you don't have some gift at your early age.

    Quick and successful hands need its master, the mind, to break down all of biases in the area the hands are. It is funny while I read what I thought a decade years ago. I was so ignorant, insane, and hopeless then.