RE: sp gaps25 Sep 2018 16:39
Roydon,1 good man long term for me there are three options:
- Fat bluechips where I park money and not even look at the Sp. Because I know the 150k once parked in Microsoft at $40 in 2015 are either a llittle bit more worth two years later, or even doubled by 2018. Actually they are $95 right now.
No worries, no trading needed, just a look at the weekend Dailymail with a cup of tea. Very unlikely that you will see neck breaking surprizes, like with KAZ.
- Shares that make slightly more swings, but only small, and on which I plan to retire one day. Like Volkswagen for example, after their drop/those scandals. Here I have a standing buy order every month. No worries, never mind the share price. Even if there is a main market crash, that monthly order would still add the same amount. Sometimes you slightly overpay at 150€. During other months you buy for merely 100 or 90€.
Every long oriented PI should have a stock investment plan, or buy into a fund regularly.
- Risky large cyclical shares like KAZ, BP or Vedanta, that are highly exposed to the commodity market as well as global politics or to some explosion at an oilfield.
These shares consume a lot of time and nerves, with some fat rewards each week, as well as sideways weeks that you must survive. I call them long term, because they will offer similar investment opportunnities in the next three or five years.
But before KAZ reaches your announced 1,000p again, I will have bought and sold around twenty or thirty times.