Beyond useful topics like cost averaging,cut lost strategies,consider also

(a) Be slow to buy because entry price is every thing. Money at hand has a way of pushing you to place order. Take it or leave it YOUR CASH IS KING.

(b) Time is money,be ready to wait as long as possible to buy low. You do not need to place buy order immediately you have funds,waiting for bargain prices can bring gains.

(c) Plan to buy at a price that is far below your thinking,the kind of price YOUR BRAIN CANNOT COMPREHEND. It is far cheaper and less stressful to delay to buy at a good price than to buy and regret thereafter.

(d) If you loose a buying opportunity,wait with your cash intact for the next cycle. The next opportunity will come even if it is not that particular counter. My long wait for equity to levearage (at earlier one bought at 299) at below ksh 200,have brought a buying opportunity in KCB circa ksh 23. Still waiting with cash !!!

(e) Think of leveraging on stocks with heavy weight in your portfolio rather than on a particular counter. Be careful not to introduce fresh money to a losing counter so as not to sink deeper.

(f) You cut loss on a sinking stock,but leverage on a violatile stock. You do not leverage on a counter that you are not 101% sure of a quick rebound.

HAPPY HUNTING



AFRICAN INVESTOR

now you know,no further mistakes

kitkat

Not a lesson but a reminder.
The only investors still seeing green on their accounts currently are those who bought pre-2006 or even better,pre-2003.

www.mjengakenya.blogspot.com

@Jammo,

I totally agree with Mainat.If i bought NMG way back in 1990 at 10 bob,where would loss come from??........The current market goes to say alot about long term.When everybody is in panick,you can sit pretty and wonder what the melee is all about......sounds cynical but it's a fact.Anyone who's been in this market for ten years and has made a loss??......

@Njung'e

I think both Jammo and Mainat are right. their only difference is the word 'only' in Mainat's second sentence.

your NMG example goes and its right coz the dude is still sitting pretty.

However,someone who entered market early this year,bought equity @ 150,sold @340 and hasnt re-entered yet,is still sitting pretty.

Some deals are like glass. Sometimes it's better to leave them broken than try to hurt yourself putting it back together.