today, page-17

Well done Andy Bee, on your decisive decision to take back control of your investment. With 3.2million shares in a loss, stepping out of the stock is a big psychological win for you.

The first rules in trading are to protect your capital and to protect your health (stress). This stock could halve from here, in fact I’m betting that it will, and yet too many amateur investors get caught like rabbits in the spotlight unable to take the right course of action and hang on in hope. I loathe being in that position and have a trading rule these days that if I ever catch myself “hoping” for an outcome then that’s a clear signal to just walk over to the computer and sell.

I think you’ll find that you’ll be able to see Lynas much more clearly out of the market from a detached, unemotional perspective. Once you’ve accepted a loss, then you’re free to invest elsewhere or to buy back in at a different price when it’s on its way up. Whether you buy back in at $0.30 or at $0.50 doesn’t matter as long as you wait until the stock is heading up then you will make money, and that’s what this game is about. Referencing the previous price you bought or sold is irrelevant, that trade was lost long ago, so write it off and start again.

Things will work out in the market if you focus on trading well – and I think you’ve done that today.