The Helium One share price deflated even quicker than it inflated as of late following exploration efforts that failed to produce gas flowing to the surface.
Following an almighty collapse of over 40 percent in the Helium One share price (AIM: HE1) after initial exploration woes, the company looked to restore faith in it a short while after, suggesting it learned from its mistakes and that its second exploration site will help discover the “free helium gas” that was allegedly waiting to be discovered.
However, this was not to be the case and soon after, the second exploration site did not identify any helium gas.
The problem? Unsuspecting investors bought into the hype perpetrated by various individuals and outlets without understanding the risk. In turn, this led lost to livelihoods being potentially ruined in pursuit of a quick and very inflated gain:
A very sad post wrt #HE1. These sort of posts always cut me like a knife. As I don't like to hear of #investors losing such sums of #money. If anyone is facing difficulties w/ a holding or significant loss then please contact me & I'll do what I can freely to help🙏— Peter Higgins (conkers) (@conkers3) August 26, 2021
📸via @Borg74 pic.twitter.com/LMzcttpcUH
The major lesson to learn from the Helium One share price collapse
There is one golden rule that investors can learn from from the Helium One share price collapse and that is to only invest in stocks and sectors that you personally understand – not because social media influencers are flashing hypothetical charts, RNS updates or websites are portraying them as the next big thing.
If you as an investor do not understand shares like this, then you may consider taking a ‘gamble’ but that’s what this would constitute and with that you should look to minimize your outlay not amplify it given the risk involved.
There are a number of ancillary lessons that can be learned from the fall in the HE1 share price and investing in AIM shares more broadly – including to avoid buying in a stock that has hyper inflated in recent times and is dependent on a single and uncertain outcome.
It also a lesson that many investors in Remote Monitored Systems learned the hard way as there were clear warnings regarding the Remote Monitored Systems / Nanosynth group share price which a large number of investors ignored as the RMS / NNN share price crashed from over 5p to sub 1p.
The HE1 share price is currently at 9.10p and for any investors we’d suggest to tread carefully – although they are music to traders’ ears who are comfortable with the amplified risk.