The Ghana Stock Exchange ended the week positively, following 0.22% rise in GCB’s stock price. The GSE-Composite Index closed recording a year to date of 7.11%. The GSE-FSI gained 0.73 points to close trading at 1,695.04 points reaching a CYTD of 9.64%.
There have been a lot of activities on the exchange this year with some stocks recording their highest trades ever since inception of trading. This looks promising after a tough year in 2016.
Some investors who got into the market whiles the market was at its low point are beginning to get out retrieving their gains in some good performing stocks like Fan Milk (FML) and GCB bank among others. The issue of timing is very crucial when it comes to investing. Others are still taking advantage of the relatively low prices of stocks in the market hoping for a better year under the new government.
Despite all these some investors are just totally giving up on the capital market and resorting to the money market hoping it gets back to its 2016 form.
Dumsor threatens, Inflation drops, IMF support to stay, probable drainage of Heritage fund to commence, what should one do with the bleeding portfolios of stocks.
This morning, I decided to mitigate the losses by buying more of the stocks I hold at a lower price than I earlier bought them. By so doing, a slight increase in the share price will restore me to the profit zone than waiting for the market to fully recover.
To stop the loss and start seeing gains, you need to consider buying more at the current lower price. How much more will depend on how deep the fall is from your cost price and how much you already hold.
I guess this is your best way out at this current state of the market. It is better than selling you out hoping on the money market.
What if things turn the other way round? Won’t that cost me more? Yes….. It surely will. That’s why it’s a risky market hence you need to be tough and make that decision to stop the breeding.