----- Original Message -----
Sent: Sunday, February 22, 2004 9:48
PM
Subject: Re: [sharechat] My troubled
portfolio......
I would try to stop buying shares in companies
that are on TV or in the news every other day. If you want to own shares in
companies that most mum and dad investors own, do it for the yield and treat
any capital gain as a bonus. Be prepared if you make any losses that you are
in the share for the long term.
If you don't want to hold a stock if the share
price is falling. I suggest you write down when you buy a share why you
brought it and how much of your original capital investment you are
prepared to give to the market. Whether you cut your loss at say
10% or on a stop loss or on a tend line, doesn't matter, as long as you set a
limit. If the share price drops below your limit, SELL. Don't just wait
for good news or the market to turn, SELL. Selling may not always be the
best opition. But 9 times out of 10 it will be.
If you are buying shares in the hope of
making capital gains, the NZ market is not really where you should be looking
at the moment. There is far better opportunities across the ditch right now.
I don't have an opinion on where the gold
price is going but I'm still keen on other metals such as nickle. The big
gains will still be made in the mining related stocks for the first half of
this year at least.
But be prepared to sell and look for the
next trend it could be biotech it could be software, who knows. But do
your homework now. Pick a few stocks in different sectors of the market you
feel are good value and keep an eye on them. The biggest gains will be in
companies not in the news every other week. Get in at the start of a new
market trend and hopefully make the big gains. Don't get in on the trend as
the market is moving onto the next trend.
See IRG research reports
