DYOR (Do your own research)

Thursday, 12th March 2009 09:10 - by GedW

We have witnessed some spectacular gains recently, mostly on takeover speculative share buying. It seems to me, however, that most who chat about the shares have not carried out any research, but blindly buy-in anyway ‘because everyone else is’. This serves to self-fulfill the share price rise, only to find they have bought just before a correction. I always lock in some or all of the profits once my target price has been reached and also set stop-losses. That way, I have further funds to use elsewhere should the share price dip and present a further buying opportunity. The additional holding can then be used for the longer term. After all, it is likely that someone will want to purchase that company in future or yet someone else might recognise the interest shown.