Know what you own
I saw this posted on the board of another security I own and thought the simple wisdom of it worth passing along.
regards,
gktignol
+++++++++++++++++++++++++++++++
If you buy a stock thinking it’s good because it’s rising and bad because it’s falling, then you are doomed road kill in the markets, fallen prey to the scrupulous manipulators and you may want to consider real estate auctions which are plentiful these days. Somehow, I get the impression that neither of those two options apply to you. But I digress…
If you bought without reading the “details” available in the public domain, or sold based upon what was published early last week, that’s all on you. The responsibility to understand what you are buying are yours alone. Likewise, for when you choose to sell.
Frankly, if I were a buyer at the recent top, assuming I had a valid reason in placing money into the deal beyond only that it was going up, I would at least give the company enough room to execute their business plan on the imminent re-launching and re-branding of the company to see if my reason for buying would be validated, or not. There are also stop-loss ordering strategies if your focus is primarily preservation of capital and you are less risk tolerant.
On the other hand, if you only bought in due to momentum and only sold, or thought of selling, due to the correction/shorting/profit taking/lemon headed shaking of the tree…you have paid, or will be paying, a price for a valuable lesson. Don’t buy on momo alone. Have a reason to buy and a reason to sell prior to pulling the trigger. If something changes along the way make the appropriate buy/sell adjustments. For example, I added at $x.xx thinking it would hold above that support level. Obviously, I was incorrect in reading the immediate support and direction but my purchase was based on the understanding of the emerging company mission statement, products, its market sector, and management’s skills and integrity. Per my usual approach in a volatile equity, that was half of the investment value I had planned to use, and now, I’ll use the other half if it holds above the current pivot point of 2cd level support this week. Should it head lower instead of recovering after that, I’ll neither flinch nor blink, but wait it out. I firmly believe that this company has the goods and the management to be a success in what history may prove to be the most explosive growth sector in the storied history of the net. There's plenty of room in the sector for anyone with a good product offering and xxxxxxxxx certainly qualifies as that in my book.
