Micro-Cap Movers and Shakers From Tosh Lines, 26th January 2020

What a s**t week. Sometimes in this game, you get completely blindsided by bad news and the market serves you your backside on a plate.

Well, earlier in the week I purchased TICKER: MWG for a trade, as it had bounced off the bottom of its recent trading range (1.10p to 1.68p), closed above the 8EMA and my aim was for a trade towards the upper end of the range. But then out of the blue, on Friday, came the bad news. They had done a placing, but not the usual 10-20% discount to the share price kind of placing, but a filthy whopping 60% discount to the share price kind of placing.

BANG, down went the share price in a flash. Brilliant. I sold, and took the loss on the chin, rather than wait it out or average down. I expected the share price to keep dropping towards the placing price, but instead, it bounced. Oh well, I could’ve walked away with a smaller loss. But rather than get emotional, or revenge trade, I gracefully accepted the loss, turned off my laptop and closed the office for the day. When the market kicks my arse, I have learned to clear my head before trading again. So that is why I switch off and go and do something else, like play golf. I smash a few golf balls and instantly feel better. Bring on Monday, where I will go again.

I’ve since read on social media the CEO of another AIM company mentioning he and his comrades took over 50% of the MWG placing. No wonder he was on Twitter full of positivity. Nice mates’ rates entry there and a massive kick in the face for shareholders. These Company Directors can try and justify it all they like, but it’s the same old story, line their pockets first and stick two fingers up to shareholders. Good luck to those who have remained invested, I really hope it recovers for you.

And that my friends is the nature of the beast and the risk we take trading these micro caps. We are susceptible to dodgy finance deals where the City Boys/Girls and Company Directors always win.

On that cheery note, the FTSE AIM All Share failed to breakout past its recent resistance point, closing the week down at 965.91. The breaks seemed to have been hit on the recent bull run. Maybe with the BREXIT deadline passing this week, we will get another surge?!

That said, I clearly went down the wrong path this week, it happens. The standout performer was 7Digital Group plc (TICKER: 7DIG) after it announced a decent Trading Update on Tuesday. It hit one of my screeners after it broke out from the daily 8EMA on strong volume, but I decided to trade elsewhere. Hindsight is a wonderful thing; the share price rose 241% this week from a low 0.156p to a high of 0.532p. The Daily chart below, shows the lovely move it made.

Some other opportunities this week were Petrel Resources plc (TICKER: PET) which bounced back 174% from a low of 5.42p to a high of 14.85p, Goldplat plc (TICKER: GDP) which soared 145% from a low of 2.6p to a high of 6.38p, Veltyco Group (TICKER: VLTY) which jumped 46% from a low of 5.75p to a high of 8.4p, and Global Petroleum (TICKER: GBP) which climbed 44% from a low of 1.6p to a high of 2.3p.

I hope you all got some of these plays, and hopefully, I will bounce back this week, otherwise, I’ll be up the golf course again.

In a bit Tosh


Author: Tosh Lines

I am a full-time trader who focuses on micro-caps, a freelance writer, and when I am not staring at the screens I am most likely climbing 3 mountains in 1 day for charity 

Please note: I have a new Twitter account @_TradeTheTicker please give me a follow!

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