exactly, a lot of this is about being able to come to peace with yourself, no need to bash yourself for
missing potential gains or
should have have bought a
bit later. The perfect entry and exit point only exists in dreamland.
To me, I have only invested in a few shares, A2M, DRO, FBR. My formula was rather simple:
- Do I believe it has a scalable market, not how fancy it is, it has to be a real solution for a real BIG problem.
- Do I have the patience and timeline, last thing you want to see is short term cash flow tighteness which impact your long term strategy.
- Do I feel the need to deversify some capital just case it didn't work out.
If I answered No to any of those 3 above, I wouldn't spent a cent at all.
Once exited, I don't look back, I guess this is psychologically the hardest part. I sold DRO at $1.93 knowing there is likely further upside, but I was very comfortably saying to myself, I'm happily walking away even it goes to $4 next week ($2.72), as I don't believe in that upside, and it doesn't justify my risk.
At the end of day, a win is a win, not losing money is winning already.
Have been correct and lucky with A2M and DRO, I comfortably belive I'm correct again on FBR.
(20min delay)