Too many investors in the stock market panic when stock prices fall. Not to say they are not experienced investors to know the trends but even experienced investors panic some times especially when things don’t go as they expect.
I have trained myself to look at the opportunities that come even when I’m losing money.
Unlike trading forex where a loss or continues loss can totally wipe you out of the market, falling stocks only make you paper losses which even creates more opportunities for you to own more of the company.
The Oracle himself said
“The first rule is not to lose. The second rule is not to forget the first rule”.
So if you find yourself losing, buy more to mitigate the loss or totally eliminate it. This way, you will position yourself to gain more when prices rise.
Looking at the gainers and losers for today’s trading session, SPL dropped one pesewa and lost 33.3% in value. And this means with a Ghs 1000 invested, Ghs 330 is gone. (At least on Paper). Or a loss of Ghs 3,300 on a Ghs 10,000 investment in SPL. This is scary but when you know that every move in the market comes with opportunities, that won’t scare you at all.
SPL is not just 33.3% cheaper but also positions you to make 33.3% gain in just a pesewa increase.
So now that you know, choose your stocks carefully and when you buy, make sure you follow what Warren Buffett said…. “Never Lose.”