extract resources technical analysis, page-120

Hi testrichard,

I think you make some very good points in your post. It is sometimes easy to forget that some readers may not be experienced investors and/or traders.

One simple lesson I'd suggest for those just starting out is "don't be greedy". In my experience, investing is not easy and it takes time to understand all the nuances. I've still got plenty to learn, even after more than 20 years, with the most recent 4 on a full-time basis. Any investment carries risk. There is no such thing as a "no-brainer". There is also no such thing as a "unique opportunity". Over your investing career you'll come across several really good opportunities.

So, DON'T RISK MORE THAN YOU CAN COMFORTABLY AFFORD TO LOSE.

In my own case, because I was lucky in buying Extract at what turned out to be the ideal time, my investment had grown to a scale where I was no longer comfortable with it, so I reduced it. Even though I still felt there was a good chance of it going a lot further. If I had not done so, Thursday's fall would have been really painful for me. Having done so, I can view the fall with equanimity - and a possible buying opportunity should it fall much further.

I really like Lord E's motto "with every mistake, we are surely learning" (hope I've quoted it approximately correctly :0)). Everyone makes investing mistakes - even Warren Buffett. Make sure you don't risk so much on any one investment that you will not be able to benefit from the lessons.

Good luck to all investors - new and old! :0)

Regards,

Mark