keep your eyes on the bigger picture

I don't want to sound hypocritical with what I'm about to say, because I follow the TA of CCC quite closely, and thus I am almost obliged to keep an eye on the daily movements of the share price if I want to analyse the stock's movements correctly.

This post is adressed to the holders of CCC who are looking more than 3 weeks down the track. I am one of them, and I should learn to practice what I preach.

Anyways, moving on to the point...

At the end of the day, the stock market is a medium to becoming part of a company. When I invest, I think of my investments as owning a business, rather than owning a stock. The stock market is just the middle ground between my money and the company in subject.

Think about this for a minute. There is a big difference between a business and a stock. The value of a stock fluctuates every second, for 6 hours a day, for 5 days a week. A business, on the other hand, really only changes value over time due to production and developments.

This is where you need to recollect your thoughts as a shareholder of CCC. No amount of manipulation or bot trading can change the value of the business that you own, even if it is constantly moving the value of the stock upwards, downwards and sideways.

If you are a believer of where Continental Coal is heading, you should not mind if the stock drops to 8cents or 7cents or 2cents. If anything, you should use this as a buying opportunity. At the end of the day, this business is constantly growing in value, and even if the share price does not demonstrate this, you should always keep this fact in the back of your mind.

Everyday we are selling coal.
Everyday we are making revenue.
Everyday we are closer to Penumbra opening.
Everyday we are closer to confirmation of the De Witt developments.
Everyday we are closer to getting those drill bits into Botswana.
Everyday, the value of Continental Coal, the business that we own, is growing.

Don't let these 0.1c movements get to your head. If the stock drops 5% in a day, does that mean we sold 5% less coal today? Ofcourse not! If a bot decides to dump into 8cents rather than sit up at 8.5cents, does this mean that the company is doing something wrong? Ofcourse not!

My advice is to take your eyes off the screen during intraday trading and just keep an eye on the closing price of the stock. We all fall victim to it occasionally, but it is important to not focus too much on the stock, the business is what matters!!

If I am planning to hold until 2013, does the share price matter one bit right now? Of course it doesn't! I am planning to hold for at least another 700+ days. There is plenty of time between now and then for the stock to appreciate in value. Only when it is time to sell will I begin to fret over the intraday movement of the stock.

We need to keep our eyes on the bigger picture here; whether that be 1 year away, or 5 years away. Always remember this, everyday, the value of Continental Coal is growing, no amount of bot trading can get in the way of this. The only time you need to worry about the share price is when you need to sell! If you believe that Continental Coal is a good business, the long term trend in the share price will follow accordingly.