Tuesday, August 1st, 2006
Making a fortune by selling early
The latest edition of Kiplinger’s personal finance magazine features a number of successful investors, including Jim Geister who made a fortune trading internet stocks. Unlike many, he managed to keep most of it by selling out before the dot com crash. The secret of his success? Keeping a grip on reality. “Trading during the Internet bubble, you had to believe in it, but you couldn’t divorce yourself from reality,” he said, adding he sold out when the likes of Louis Rukeyser became dot com bulls.
Geister makes a good point: to make money as a growth investor requires a tricky balancing act between having an optimistic view on the company’s and market’s prospects, but at the same time always looking for signs that the music is about to stop. In simple terms, it means never falling in love with a stock. But this is easier if you have clear, simple rules to tell you when to exit positons. Over the next few months Global Growth Investor will be looking at some effective sell rules to help cut losses and maximise profits.
Word Count: 175. This entry was posted on Tuesday, August 1st, 2006 at 6:23 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
