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Hello Crazy Gang,
Shares are a fun thing to do. Where would I get my daily dose of thrills without a few shares to check up on?
However, we must always remember that you must never get carried away. Only ever invest what you can easily afford to lose.
This is wise advice, even though the chances of a company going bust on you is fairly remote. Firms do fold, it's true, but for a Stock Exchange company to collapse is quite rare. Thank goodness. It has to have fairly good financial credentials to be listed as a public company in the first place.
And though the best of companies can go pear-shaped in time, it's not that common for a large firm to go belly up. So that when it happens, it is quite big news.
However, shares can - and often do - fall in value. We all know that. And my strategy is to sell shares which show signs of weakness. I do not sell all shares which drop. There are some which I keep faith in even when the market does not agree with me.
This is often due to pride, more than common sense. And that's fairly silly, because pride is one of the seven deadly sins.
Nevertheless, it is stupid to sell every single faller. I have a rule that if a share falls 7% I sell it. I break this rule quite a lot though, and some of the time I'm very glad I did break it. Because the share can bounce back in a big way. In my humble experience, this does happen too often, but it can happen. And if I've researched my share properly before I buy it, then I can afford to give it a little more than my usual amount of leeway.
My personal policy, then, gang, is to make policies - but don't stick to them, if the circumstances are not right. Rocking on!
To find out more about Malcolm CLICK HERE
UKSA is the leading independent organisation for private shareholders in the United Kingdom. It campaigns to protect your rights as a shareholder and runs educational activities for members.
For more information about UKSA CLICK HERE
