Monday, October 25, 2004

"Surging Security Stocks May Be Dangerous"

http://tinyurl.com/5fuo8

It is always exciting to latch onto an investment idea, or react to news. But when "HERDING" occurs, they can switch directions rather abruptly.

If you are in BEFORE the "herd" bully for you. Can you maintain disciline to take profits when they are in front of you? Do you set goals BEFORE you buy something? Do you have an exit strategy?

The stock you buy for $5 can go $10, and from there it could go higher, but it is also likely to retrace a portion, many times a goodly portion of the move BEFORE the trend might continue.

SO, maybe it helps to set an area that if you are right, and or lucky enough to get that run, that you have already planned how you would deal with it, calmly, coherently.

Ye' ole' "bird in the hand......." it works with investing to, more so for speculating"

Duratek

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