|
Folks keep striving to discover rationality in the markets, and while it will surface in the long run, shorter-term moves are typically inexplicable, buying and selling taking place for a host of reasons, not the least of which is greed arm-wrestling with fear. It's important, I think, to have a plan for each stock you own and stick to it, and the more specific the better. If you plan to risk 20% to make 50%, translate that into sell points and follow through. If you plan to sell into a deal, wait for the deal and sell shortly after it's announced, unless, of course, your plan is to follow momentum from the deal and sell when it stalls, or your plan is to give it two weeks to attract further interest and then sell, or your plan is to hold long term to see if the deal bears fruit. Investors are better off sticking to their specific plans, even if the plan includes adopting a new plan should certain events take place or fail to take place. If your plan is just waiting to see what happens and deciding what you'll do then, that ain't a plan. Finally (before my soapbox collapses), the enemy is impulse, which is usually propelled by fear or greed and too often leads to the wrong move at the wrong time. . . . My plan included buying a bit more in the low 11's if the stock dropped to the 10's and bounced back. So I did that yesterday. Come mid March I'll know if that was smart or not. . . . And to those who are negative about CCSI, keep posting despite the people who are distressed by first amendment practices. Just think of those who indulge their emotions as being blissfully in touch with their inner teen-ager. |
