Losing patience... the day of reckoning will come however.
by, 1st-January-2011 at 08:25 PM (14473 Views)
My rule was to keep 70% to 80% in cash or short term bonds, however, I lost patience in 2010 and speculated quite wildly.
After receiving a lot of cash from the takeover of Felix Resources by Yanzhou Coal, I got a bit carried away. [we were robbed as the $18.05 bid should have been $24 to $27 a share, one day I may know the answer to this]
Anyway, I was fortunate, there was a bull market in the mining sector, now I'm gradually going back to my 70%+ cash levels. If the market had crashed in spring 2010 I would have been up a gum tree.
Perhaps the comments by the late Bob Beckman are more right than I thought, "the only time I did badly was when I failed to take my own advice".
Before my trading was principally in Australia but I was drawn to the UK's AIM madness market. I dived in and out of stocks like an out of control 'day trader'. One problem for many is trading T20 to put off the pay day and then closing out by T2, a problem only if stocks go down.
Number one rule on AIM is, "it's never wrong to take a profit" and two "gladly leave some profit for the next guy". 3 is, "take losses quickly as they often widen, don't hesitate, close out".
Never allow yourself the opportunity to say, "Oh well, I'm holding on for the long term" - admit it, "you've failed".
2011 looks to be a good year ahead but I think there is going to be a time to cash in our chips. China, Asian and Arab investors are still piling in [near every sector in Australia] and newer up market properties in places like Sydney are likely to travel on up quickly - the day of reckoning WILL come however.
The mining and oil sector is likely to climb fast, though it depends whether your company is an explorer or has big producing mines and whether the 'big wet' has damaged them badly or not - the day of reckoning WILL come however.
So it's glory in 2011 investment profits, remember though, cash them in for the day of reckoning WILL come.
Good fortune to you. My motto for 2011 is, 'run your profits then cash them in' - Good luck, noi
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