Forum Archive Index - September 2000

["Warner Lamb" <cloud9@i4free.co.nz>]

Brian, yes it is sometimes tempting to change your position and sometimes
its necessary to check your original beliefs about the stocks potential and
the investor may become a trader in the short term to buy his original stock
back later.
I read a great article buy Tobin Smith of Changewave Investing who was
talking about Investor Convictions for the long term a how the short term
correction can be good for "shaking out" the weak in the register. This he
says would bode well for future sustained rises and is necessary as a stock
establishes new levels on the way up. It seems with more trading going on,
that the jump on, jump off style investing will lead to more short term
volitility and leave many fundamental believers bewildered as to the
direction a stock has taken "short term" (as has happened on S-chat
recently) . Therefore going back to Phils 2 year horizon, you must have a
strong conviction about your original decision or as you say, may be tempted
by other offerings and be prepared to take a loss.

My eg. and the only red ink on the screen for me is RMG, RMGOA. -10%
now $1500 red.

My original belief is strong, and have rechecked my reasons for buying and
this definately comes into my two year horizon, and short term I have
decided to take the pain.
What I probably got wrong here is the weaker sellers coming from the old
company, who are happy to sell at a profit.
If my convictions weren't so strong I would probably have cut my losses as I
have done before and am not afraid to do.
Warner



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