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Monday | Tuesday | Wednesday | Thursday | Friday | That was the week that was
THOUGHT FOR THURSDAY 31TH JANUARY 2008
Hello Crazy Gang, There's a little ploy I use when the markets are going down. Now perhaps? This is one involves looking for the odd one out. Thuis is how it works. You seek out a share which is not moving down when all around it are faring badly. But it only works if the fallers are in the same line of business. A share which survives a storm when others don't, proves that the City has confidence in it. Big traders expect it not to fall - so they don't sell it as enthusiastically as they do dispose of its peers. They also expect it to rise further and faster than its rival when good times reign again. Even if the shares only rises as fast as the other similar companies during the recovery, then you may well make more money out it because the others are now starting from a lowlier base. If I spot a share swimming against the downward current in my bag, I will often buy more of the same stock. I certainly won't sell it. In fact, this is one share I will probably not sell - even if it puts on a mighty leap later on in the space of a few days. (Normally, you may, recall I sell after a big jump, expecting that the buying has been overdone on some piece of good news or other. But a share which can stay put when stocks all around it fall (to parody Rudyard Kipling) probably indicates a very strong company. And robust companies these days are like parrot's teeth - very hard to find. Yes, gang, the more stocks you have which don't tend to fall when the market does, the happier you will be in the end. Think on that as you join me in... the Punter's Return. To find out more about Malcolm CLICK HERE
UKSA - UK SHAREHOLDERS ASSOCIATION
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