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I am extremely excited to announce my new e-book,
is now available !! Click here to find out more.
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October 22, 2006 Falling in love Ok, I’ll admit it. I’m in love. I found a company that I thought would really move and would increase my net worth substantially. It was everything I ever dreamed of in a stock…and more. News kept coming of exciting new possibilities and products. The future was so bright I had to wear shades. This was a once in a lifetime find; A twenty-bagger for sure. I bought cheap and was hanging on for the long term. I watched as it surged to more than five times my purchase price and stayed “all in.” I then watched as it dropped, even more quickly than it had risen. I was lucky. It stayed above my average share buy-in price. But I could have made a nice chunk if I would have sold at the peak. Who knew what the peak would be though. I thought the price would just keep rising and rising. When it started to fall, I told myself that I was in it for the long term and that I had to ride the waves both up and down. Was this the wise course? Time will tell. I still think the stock will come around and move upward. But, when do you sell? I am trying to sell when I reach pre-determined plateaus. Is that a 20% gain, 40%? That number depends on where you think the stock should be. The book value of a stock (price of assets divided by shares) has something to do with how I determine value and where I sell. Back to my initial point. If I get to close to a company, and start to get that starry look in my eyes, that’s not a good thing. I need to keep my grip on reality and keep the relationship with the company professional. This might sound a little bit silly (OK maybe a lot silly) but it happens all the time. You have to know when to hold ‘em and when to fold ‘em. If you stay in the game for sentimental reasons, you’ve lost the perspective you need to be successful in the stock market. Until next week, Solid Investing to all Rob
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Want a scholarship into the Millionaire Mind Intensive worth $2590? http://www.secretsofthemillionairemind.com The columns, articles, message board posts and/or any other features provided on Wealth Training Source are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author’s own and there is no implied endorsement by Robert Britt of any advice or trading strategy copyright Robert E. Britt 2006 |
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