Читать книгу How Not to Lose a Million Dollars in Stocks - Melvin Hirsch - Страница 6

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AT&T is certainly regarded as a solid great company, like good old apple pie. Suppose you purchased the stock on May 29, 2008 at 40.20. At that time the stock had been moving up and you assumed it would continue to move up. It then rapidly declined to 30. You feel this is much too big a loss to take on such a solid company so you set your sights on selling for a smaller loss at 35. The stock does climb up to 33 and you are getting ready to sell at your new target price of 35. Then the stock breaks down rapidly, declining to 22.42 on October 10, 2008. You push the panic button and sell to recover whatever you can. You have now lost 44% of your investment in a period of less than 5 months, investing in one of the most solid companies in the United States.

I think by now you get the point. There is no special security, safety or gain to be made by investing in the “Best” corporations. The patterns above can be retraced time and time again in stock after stock. Perhaps the biggest error investors make in this scenario is they watch and wait to long, finally buying after the stock has made its climb upward and even more serious they hesitate to get out and take their loss quickly, finally selling at a panic price ensuring a devastating loss.

Patterns will be further discussed in the book enabling you to recognize buying and selling options but first it is important to get you to think “outside the box” of traditional investing concepts.