Sunday, January 6, 2008

Are you a short term investor? Don't ever blink !

Imagine that you are driving your car at 100 mph in a 50 mph zone. Will you ever blink? You'll be extra alert and you'll never take your eye out of the road.

Well, you should do the same if you are a short term investor. You should never take your eye off the market. There may be golden opportunities which may not last long. You should act immediately to grab the opportunity. For example, my stocks gained about 8% and came down to 1% gain on the same day. If I was a pro, I would have made use of the opportunity. I've seen Ericsson (ERIC) losing its market value by about 25% in less than 2 weeks - when the company disappointed the investors with its 3rd quarter results. What would happen if you are holding ERIC's stocks. Can you afford to loose 25% in two weeks?

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