I thought rules were for the road – which we share with other users. And we need to compromise our own wants to obey those rules even when we don’t want to.
With investing, we set our own guidelines depending on our ability to cope with risk, and debt levels. We have sole responsibility for making decisions; it doesn’t matter what other investors are doing; they’re on their own “roads”!
Every stock that we invest in should be considered on its own merits. Some investors choose to subscribe to newsletters or charting programmes that give advice on what and when to buy or sell. Whether one chooses to follow advice from these professionals, it is still a choice; they don’t have to religiously follow every bit of advice offered. In these cases however, if one buys a stock upon one of their recommendations WITHOUT ANY PERSONAL KNOWLEDGE OR RESEARCH OF THAT COMPANY, then it would probably be wise to follow their advice of when to sell, and apply a stop-loss.
If however, one does his own research on the company, and keeps up-to-date on their activities, and anything that may affect their trading performance, why would we wish to apply rules instead of using our God-given intelligence? Fluctuations in share prices should, of course, be closely monitored and investigated. Whether the share price plummets, or greatly increases, one may then wisely consider it either an opportunity to top up, or bail out before it drops (further). As stated, it depends on our ability to cope with risk.
PDY Price at posting:
3.2¢ Sentiment: None Disclosure: Held
