Stock markets are scary places to the uninitiated – not without reason! Hard earned cash can disappear very quickly if incorrect or ill-informed investment decisions are made. Please read the terms and conditions associated with this website and understand that stock market investing carries risk of losing money!
The author has 30 years of experience playing stock markets to draw on, during which time some of that experience was delivered by the school of hard investment knocks. Rather than be daunted by such episodes much analysis was conducted as to what went wrong. This has enabled a successively better methodology to be adapted by the author when selecting investments.
There is an adage in stock markets “Buy low and sell high.” Common sense comes the unanimous cry in return. Mixing emotions into that equation, namely fear and greed, makes far too many investors flip that adage on its head. Usually this flipping is accompanied by statements such as “Look at this go up – I want a piece of this pie” or “Is this falling never going to end – I want out.”
Very few investors have an exit strategy all planned out at the inception of a trade. This is a fundamental oversight and possibly the greatest reason that profits on an opened trade can evaporate and become lesser profits or even losses. Always bear in mind a profit bagged remains a profit. The articles on Xcite Energy bear testament to this reasoning, with the price subsequently falling to circa 60p.