By Malcolm Stacey | Wednesday 15 March 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Carriers. It’s often said - and for good reason - that timing is everything in the great share game. Usually it’s trying to sell at the top and buy at the bottom. As this is well nigh impossible, it’s probably useful to look at other matters of timing, which are a bit easier to achieve.
I refer to the matter of share tips - or in my case commendations to look at a share I like a bit more closely. Someone very wise in trading told me 30 years ago that if a share tip is published, the market-makers know about it faster than anyone. They then whack the price up before armchair tycoons like us can get in on the act.
Therefore after a tip it can be sensible to wait a week, say, before buying. By then (hopefully) the share price will have drifted back to its pre-tip price.
Timing suggestion two appears to contradict the above. But that might be because lesson number one applies mostly to big tippers, like banks or brokers. Because one thing I’ve noticed about the commendations I make is that soon after appearing on this website, the share price will often dip. At first I felt rather hurt, but then I found it rather flattering.
You see, the short-term traders see my humble words and think: if the price is not going to rise now, it may not do so for some time. So they choose the moment to sell. It’s happening now as I look at my latest suggestion, Zytronic (ZYT). Many more sales than buys.
The trick then, if your own researches match mine and you like the share’s prospects, is to wait again before you get aboard. Three or four days might do it.
Thirdly, always remember, gang, that waiting before you leap only rarely leads to a tragic miss. Most people do not rush to buy a tipped share, even if it is signalled by much cleverer pundits on this scintillating website. Instead, they hum and hah, perhaps even dither, for quite some time before they take the risk. So whenever you think you are too late taking advantage of a tip, you are probably not.
But I am late for the Punter’s Return.
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