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Hello Crazy Galoots All,
I have some ridiculous faults, gang. For example, I often think I've had a good day, when I haven't - and vice versa.
This is because of the Footsie's performance. If the index rises a lot, I automatically assume that it's been good for me. And yet if I took the trouble to tot up my individual share performances, I would, more often than not, be disappointed.
Even when the Footsie has had a spiffing day, there are nearly always some big blueys that have had a bad day. If I own a goodly few of these failures, then my risers are easily swamped - even if the Footsie itself is up on the session.
This also works the other way round. Take yesterday, for example. The Footsie fell quite a bit. But I hold a sizeable wodge of BG (BG.) shares. And this company rocketed ahead and went straight to the top of the Footsie winners. So I had a good day - and the Footsie did not.
Why does all this matter? Well, if some of your companies have had a bad day then you need to know about it. Then you can prune the losers - or at least assess them properly for the chances of their doing better in the near future.
But if you see a big improvement in the Footsie, you might leave your losers to fester. Which is not usually a good idea. Reliance on a rising Footsie as an indicator of your doing well is not a sound practice. I should give the idea up - and become more meticulous about identifying the day's losers, so I can get rid of them.
See you in the Punter's Return, mayhap?
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