A lot of emails asking for advice on stocks and strategy re’ their investments.
Each investor should have a clear strategy in place when investing. Take Encore,Nautical,Premier,Xcite Sound,Sefton,Chariot Rockhopper etc etc ALL THESE COMPANYS HAVE AT SOME POINT OR ANOTHER TREBLED or QUADRUPLED in value. Private investors have been sat on profits some as high as 400%/500% There has been plenty of opportunity for profit taking and de-risking yet investors haven’t. The majority of professional traders are working on very small margins ranging from 3% to 10%. If I was holding a stock that had these gains then I would de-risk the investment immediately. I wrote an article some time ago about moving on from Gulf keystone, Encore,Nautical,Premier,Xcite etc . This is the way of the market no stock can keep surging upwards indefinitely they all retrace somewhere along the time-line. Stocks are news lead and expectation is built into their price.
Get your strategy in-place and be flexible. I sold and derisked in Encore,GKP,Nautical,Xcite,Premier,Chariot. I never got out at the top and I never sold at the bottom but all my sales have been substantially above where each of the above companys sp currently sits. I sold Xcite at over 400p , Encore averaged at 135p, GKP176p Chariot at 302p, Whilst Premier averages at 1997p with Nautical at 315p. I still hold residual free stock in all of the above for the long-term. Every time I sold stock they invariably rose higher however I stuck to my personal strategy even though at the time of the sales I could have held and made much more in profit. The lesson is there for all to see. Get in cheap and get out when you are showing huge gains! And never castigate yourself if they carry on rising.