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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Radley who wrote (6654)	7/12/1998 8:11:00 PM
From: Tharos	Read Replies (3) \| Respond to of 17367

>>the potential is there, just hope it is during my lifetime<< You have just identified the main problem with "pure fundamental analysis investing." There is absolutely nothing wrong with saying, "I believe this could be a great investment, but I am not willing to wait for the rest of the world to agree with me." There is nothing wrong with establishing a timeline and if there is no price movement within that period, moving on to another investment. Problem is that we are sometimes afraid to miss out on a money making opportunity. I would recommend considering: 1. Establish a reason for making an investment and write those reasons down. Put them in a folder with your investment's name on it and file the folder. (I do it manually, it could be done electronically if you wished, but since I need a place to put the buy invoice anyway...) 2. Establish a time period you are willing to wait for your investment to pay off. This could be 1 week, 1 month, 2 years, or your lifetime. It's your money, you establish the time period you are most comfortable with. 3. Establish the price/time/number of shares at which you will sell for profits. 4. Establish how far you will let the stock's price fall before selling to protect from further loss. Recommendations I have read vary from 8% for a short term investment to 20% for a long term investment. 5. Periodically review your folder, if for any reason the investment no longer meets your criteria, or it meets sell criteria, sell it. This helps establish more mechanical control over a fundamental investment.