It always helps when they triple - long VSTM at 9.24VSTM is not normally on my radar screen - it's a small cap and I don't trade a bunch of those. Also, zoom out all the way and you'll see that this one is not without its risks. It is a stock that does not turn a profit. So in the event anyone follows me on this one, consider yourself warned. This is a trade, not an investment.
That said, in a rate cut environment, small caps should outperform and this one is already doing that. I will not apologize for the results I'm about to share. Yes, the stock is up over 3x during this span. But I'm not a buy and holder, and if you're gonna be long, it's best to do it in stocks that are going up - agreed? By the way, the 9.24 entry is after hours. I ran out of time during the regular session - today was a busy day.
So here it is - last 12M:
20 signals: 19 wins, 1 loss (still open)
AVERAGE gain = +8.85%
40% of the trades have made > 10%
average holding period = 10.5 days
Avg gain per lot per day held = 0.84%
BTW - the numbers on the arrows are on the chart are basis points. For those not familiar 1 basis point = .01%, so 252bp = 2.52%. I am just tired of typing the extra 2 characters for the decimal point and % on all of those.
I will potentially tactically add here, but in a more limited way than I otherwise would. A small cap like this can potentially sink your whole ship if you keep throwing money at it if it is sinking. I will also not hesitate to take profits along the way. This is a classic example of how nothing in the market comes for free. Yes it produces fat returns, but it also carries fat risk, so I need to approach it accordingly. Also, I have not done a full backtest on this one yet. Hopefully I can do that tonight and I'll post the results as a note here.
As always - this is intended as "edutainment" and my perspective on what I am or would be doing, not a recommendation for you to buy or sell. Act accordingly and invest at your own risk. DYOR and only make investments that make good financial sense for you in your current situation.
