GREY:LSTMF - Post by User
Post by
PUNJABIon Dec 12, 2014 12:27pm
333 Views
Post# 23224310
Timing is important in Corrections
Timing is important in CorrectionsBlack Shire sold their oil assets to TBE at the right time for good price.
Hats off to Black Shire owner who had timed the sale right. Then also sold the 36 million shares of TBE given to them at right at the top of $2.45. TBE 52 week high is $2.50
Good lesson in timing. Timing is a big factor in making & even in losing fortunes. Leveraged investors with investments on margin suffer & some never recover.
There are different investment strategies. Concentrate in one stock against diversification. Short term investment versus long time. Averaging down versus stop losses. Catching falling knives versus waiting till dust settles. Every approach has its advantages & disadvantages.
In serious corrections the best strategy is preservation of Capital. Exposure management is very crucial so that you are not kicked out of investment game. Leveraged stock gets cut into half & then they get cut into half a few more times more. By the time the correction is done & over some stock would lose up to 90 % from the top.
Eventfully good companies will survive & recover when the oil rebound. In some cases investors would have to wait a very long to just break even.
The ones who time it right will be the main beneficiates of this correction.