Micro-managing Shares

Monday, 15th March 2010 09:23 - by Boredmum

On a Saturday morning when the markets are closed, I tend to look at the ‘Bid’ prices on my portfolio and work out my sell price. I find this method really good as it gives me an accurate view of where I am financially, and exactly where I would be if I decided to sell. Well, last Saturday I did my usual sums and found that there had been a fall of £100 (negligible) on the past week. It really got me thinking; what was the point in spending so much time in watching my shares if there was very little difference in the week? So, the following week I decided to spend less time following the markets. Of course, I still get up and check at 7am for news, liking to watch for the first half-hour just to see the general direction. Other than this, I have spent less time than I normally do in watching price fluctuations. Don’t get me wrong - if I’ve been about the house, I do still have a peek every now and again but as the weather has been turning for the better I have just been heading out in the afternoons. After this little experiment, how did I fare compared to last week? Apart from my ‘silly little day-trade’ at the beginning of the week, I would have only been down £10 on my portfolio. There are things that I could have traded. For instance, when Victoria Oil (TIDM code: VOG) shot up to a bid of 4.75p I thought I could sell and look for a better entry point, then I thought ‘It’s probably not worth the hassle’. If you have a longer term plan for it, then leave it to grow over time. I’ve heard Spac3y use the term ‘Micro-managing’ and, in a sense, it is correct. If you have a longer term plan for your shares, then don’t worry about the small daily fluctuations. Give them time and allow them a chance to grow.