Originally Posted by
SparkyTheClown
Snapiti - appreciate that you have been burnt, or know investors who have been burnt.
I know it's easier said than done, but divorcing emotion from your investing decisions is said to be one of the big keys to investing success.
If the investment is poor, and won't go anywhere for the forseeable future, then you really need to weight up exiting the investment and reinvesting in something that you think will do well.
If you think there is genuine risk that your investment could go even lower, then investors would be wise to exit and be rid of the bad news and the headaches/sleepless nights that such a bad investment would cause.
Sure, they might do better in their next announcement, but on probability, they probably won't.
I lost a small amount of money recently when I divested from GPG. Bought in at 57c. Sold at 50c when they made their recent announcement with bad news on pension funds and environmental issues. What really brassed me off was their Chairman quoting Buddha as a reason for shareholders to be calm. I don't like that kind of crap. I swore, grumbled to my broker who was equally as scathing of the company, and got out.
GPG is still at 50c. I put the money into F&P Appliances instead, buying in at 41c. It's now 54c today, so silver linings and all that!
The important thing is letting go of your emotions. People think backwards with investments - you need to think forwards. Don't let a bad performing share live inside your head rent-free.
So sayeth me, and what would I know anyway?