reed - The Ugly Duckling It’s certainly not always an
of Investing easy thing, to keep greed out of
Ah, yes, that evil five your investments, especially when
letter word can get one into a you’re in a stock that’s on a
some hot water when it comes to nice uphill ride. Any prudent
investing in the stock market now investment approach should
can’t it? I’m sure we’ve all contain some form of an exit
been there, at one time or strategy, simply put how you plan
another, where the evil has on getting out of (selling) the
overcome and we think; hold on stock you hold. This would be
for a just a little bit longer one way to avoid greed, have a
and I can make even more money set price at which you intend on
than I could if I sold right now. selling the stock, walk away with
Greed can be defined as an the money in your pocket and move
excessive desire to acquire or on to the next investment. Not
possess more than what one needs always as easy as it sounds
or deserves, especially with though is it? Prior to buying
respect to material wealth. Yes, into a stock you should have some
that sounds just about right, sort of idea at what price you
certainly relates to stock market would like to sell it, hopefully
investing now doesn’t it?
you don’t have to hold it for 10
Keeping Greed out of Your years in order for it to reach
Investing
that price. Sometimes you buy
We all have our own investment into it and if you timed it just
strategies, I’m not here to tell right, you start to see the price
you what works best and what go up sooner rather than later.
sucks wind, but one thing I do When you start counting the
know, if your investing strategy dollars you are making seems to
involves greed you will probably be when the exit strategy flies
‘lose’ more often than you ‘win’. out the window and greed comes
creeping in. I mean, gee, who while the getting is good. If it
knew when you bought it that the seems as though the price is
stock was going to rise so high, going to continue to increase,
so fast, why sell now when you then why not take out your
could make so much more money? original investment plus a small
It would be downright silly to profit (if possible) and leave
get out now when you could the rest. At least you wouldn’t
clearly make much more cash if be losing any money by taking
you held on to it. Somewhere your profits when they are
deep within your being, there presented to you. You could have
should be something rejecting the best of both worlds if you
this argument, and reminding you chose to employ this strategy,
of your exit strategy and how you made your money (or at least
you’ve gone past the price you didn’t lose any) and if the stock
told yourself you were going to goes to the moon you’ll be
be out of that stock and onto the laughing all the way to the bank,
next one. or at least to your next
Take your profits when you investment. The other option,
can
let greed take the wheel, you
Discipline is a big factor could make way more money if you
when investing in the stock don’t take any profits and let
market. By employing some the whole thing ride up the hill.
self-discipline you can keep your Sure, you could stand to make a
head about your initial lot more off of your investments
investment strategy and keep and I’m sure many people do, but
greed from banging down the door. the problem with this approach,
If the stock you invested in has where is the top? And when it
made a nice move, and you have reaches the top is it going to
made the money you hoped to make stay there for a while or come
off of it, then get out of it crashing down at record speed?
What if it reaches this peak profits so that you can keep
while you’re on vacation, or sick investing, employing your
and can’t get to your computer to investment strategy and hopefully
make the all important trade? making some decent money at the
It’s amazing how fast all those whole thing.
profits can disappear and you are
*Any information contained in
no further ahead then when you this article should not be
first invested in the stock. construed as investment advice,
simply the thoughts and opinions
The main point to all this? of the author.*
Greed has a home and a mother,
just like the ugly duckling, just
perhaps not in stock market type="text/javascript">
About the Author:
Branden Moskwa is a founding partner of http://www.tradeopolis.com, your stock market trading and stock investing resource, with free access to articles on stock market trading and stock investing; penny stocks to mutual fund investing, tips and secrets and all the latest hot press releases.
