Don't get over-emotional over your shares
It can be very difficult for one to let go, if one have lost money from a share price that has gone down. But remember most of us have only a limited sum to invest and we should put the funds to good use to maximise our returns. Holding to an investment that turn sour, it prevents you from using your money elsewhere where you may get better return.
When to cut losses
You should set a target loss level. Once the stock reaches your target loss level, you need to take a good look at its prospects and ask yourself if there are any good reasons for hanging on to it.
Top-slice your successful investments
If a share price is on the rise, it is easy to believe that the uptrend will continue indefinitely. You can take some profit first by selling enough shares to take back your capital and make some gain. If the share prices continues to go up, you can make further gain from the unsold share. Remember what is in your pocket, is real money to you. Wise up and take some profit first before you loss all, if the share price suddenly reverse.
Check your portfolio once in a while
Shares are not to be parked under the bed and forgotten. It is important to review your holdings regularly to see whether they continue to make sense to be invested in.
No comments:
Post a Comment