I know slick trades full tine for a living. He seems to be doing alright.
Have you ever made any money out of shares, or was your selling a couple of houses your claim to fame? If you are in the green with your RAC investment, be honest with yourself, and work out if you would be able to sell your holding and realise that profit. If you cant do that without crashing the share price, you are trapped. Any holder could erase your wealth if they have to sell. This is important to understand.
Buying the share is the easy part. Anyone can do that. But making consistent profit is an art that many share holders never perfect. Normally, emotional attachment, greed, or disbelief that their own research hasnt worked out how they planned causes them to ride the share price all the way up, and then all the way down. I have learnt these lessons the hard way.
An added risk with illiquid stocks, like RAC, is that if you decide to sell and take some profit, you will knock the share price down.
And, if all holders continue to hold, there won't be enough on the market available to buy to consistently push the price higher. And if long holders sell to aid that they push the price down. It's a very tight rope to be traversed.
With a property there will always be some intrinsic value. Even if the house is destroyed, the land has value which grows. Shares aren't like that. Particularly this end of the market. This is high risk, and its foolish to not understand that.
High risk provides opportunity to greater returns as well as greater loss. To help mitigate this risk, you need to set targets where some profit is taken along the way. The saying "you never go broke taking a profit" is very true.
RAC Price at posting:
$1.44 Sentiment: Buy Disclosure: Held
(20min delay)