The Ghana Stock
Exchange ended the week positively, following 0.22% rise in GCB's stock price.
The GSE-Composite Index closed recording a year to date of 7.11%. The GSE-FSI
gained 0.73 points to close trading at 1,695.04 points reaching a CYTD of 9.64%.
There have been a
lot of activities on the exchange this year with some stocks recording their
highest trades ever since inception of trading. This looks promising after a
tough year in 2016.
Some investors who
got into the market whiles the market was at its low point are beginning to get
out retrieving their gains in some good performing stocks like Fan Milk (FML)
and GCB bank among others. The issue of timing is very crucial when it comes to
investing. Others are still taking advantage of the relatively low prices of
stocks in the market hoping for a better year under the new government.
Despite all these
some investors are just totally giving up on the capital market and resorting
to the money market hoping it gets back to its 2016 form.
Dumsor threatens,
Inflation drops, IMF support to stay, probable drainage of Heritage fund to
commence, what should one do with the bleeding portfolios of stocks.
This morning, I decided
to mitigate the losses by buying more of the stocks I hold at a lower price
than I earlier bought them. By so doing, a slight increase in the share price
will restore me to the profit zone than waiting for the market to fully
recover.
To stop the loss and
start seeing gains, you need to consider buying more at the current lower
price. How much more will depend on how deep the fall is from your cost price
and how much you already hold.
I guess this is your
best way out at this current state of the market. It is better than selling you
out hoping on the money market.
What if things turn
the other way round? Won't that cost me more? Yes..... It surely will. That's
why it's a risky market hence you need to be tough and make that decision to
stop the breeding.
