|Sun, 22 Feb 2004 21:48:01 +1300
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.