Hi readers,
If you are a trader and you are facing a falling market and for various reasons you are still holding on to some speculative stocks ( did not sell earlier for various reasons ) what do you do ? The urge to sell off everything can be intense and real.
But it be wise to sit back and perhaps consider the following....
- Are the stocks really heading into oblivion with no chance of recovery in a market reversal..ie a potential PN 17 company ?
- Do you have at least middle term holding capacity ?
- Is the fall in the broad market overdone and is due for a technical rebound ?
- Do you foresee an impending market meltdown locally or overseas in the near term ?
If your answer to the first and fourth question is a NO and a YES to the second and third question there is indeed no reason to panic in which case the better course of action would be to consider cost averaging or at the very least sell only when the technical rebound loses momentum.
Thank you for reading
Chris Choo
please email me if you have any queries. chrischoo007@gmail.com
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